Buy IT stocks on dips; not big on pharma but like specific stocks: Chakri Lokapriya
Chakri Lokapriya, Managing Partner, RSB LLP, says he is not too hot on pharma as a sector. It is still a very stock-specific approach. So, maybe Piramal or mostly Cipla. It has various overhangs, including FDA approval and that would probably add about 10% to EPS. Even after today's run, the stock has another 15% upside over the next 12 months. Outside of that, Mankind Pharma, from a consumer uptake perspective, still looks okay.
The word on the Street is that perhaps Diwali discounting is at play when it comes to the stock markets. Are you utilising that, buying anything at lower levels?
Chakri Lokapriya: One should clearly buy IT in market fall because Wednesday’s fall in the US was on the fears of a slowdown of Facebook and Microsoft. But why did they slow down? They said that they would spend a lot on IT infrastructure. Now, that is good news for Indian IT companies and therefore, in today’s fall we should go and buy HCL Tech, Mphasis, all those companies which cater to the BFSI industry.
We had already seen the reaction to the Capgemini guidance cut because it had come during the market hours yesterday. In fact, overnight Cognizant came out with its numbers and they had upgraded the guidance. But still the entire IT pack is in the red. What do you make of it and is this a time to perhaps buy some of the IT names?
Chakri Lokapriya: When Meta and Microsoft said they will spend on infrastructure spending, they are going to spend a lot on cloud. So, cloud is the thing where all the Indian IT companies are,
