Thursday, 20 November 2008

Accumulate IT stocks at lower level: V Kapoor

Vibhav Kapoor of IL&FS Investmart is of the view that one can accumulate IT stocks at lower level.

Kapoor told CNBC-TV18, "Private banking suffering from this whole issue of slowdown, bad loans coming up, I think the bad loans are going to increase the NPAs (Non Performing Asset) for the whole banking sector will increase tremendously. So there do not seem to be anything going for them at this point of time perhaps for valuations."

He further added, "As far as IT is concerned there is one big advantage that as the rest of the market tanks down or money flows out through the FII (Foreign Institutional Investor) route, another route the rupee continues to depreciate and that is a positive as far as the rupee earnings as concerned. As of 30th September the rupee was 47 it’s not close to 50 so there is already a 7-8% further decline so that should prop up their earnings to some extent. So I think IT is a sector, which for the medium-term at lower levels probably is a sector one could accumulate."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Source: Moneycontrol

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