Not much downside in IT stocks: Baliga

Ambareesh Baliga of Karvy Stock Broking is of the view that IT stocks have been beaten down quite a lot especially in the last two years, so there is not too much more of a downside for IT as compared to the market.

Baliga told CNBC-TV18, "For IT we are surely worried about the environment but I think they have been beaten down quite a lot especially in the last two years; I am not talking about the last nine months but in the last two years they have been underperformers. So we do not see too much more of a downside for IT as compared to the market. So I think IT should outperform in the market although you may see a net negative over the next month-month and half. So I think by December end you should get extremely good valuation as far as IT is concerned."

He further added, "Its time for people to start looking at the next up cycle because it’s no point crying over spilt milk. So one should at this point of time start planning for the next up cycle because this market moves through cycle and we are somewhere possibly close to the bottom of the cycle; it could take a couple of months possibly the next three-four months or more but its time to start preparing for the next up cycle."

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

Source: Moneycontrol