Not fully committing to IT; gung-ho on market infra stocks: Shiv Chanani

economictimes.indiatimes.com:

Shiv Chanani, Fund Manager, Baroda BNP Paribas Mutual Fund, says he would probably look for definite signs before fully committing to the IT space. Compared with largecaps, one needs to differentiate among the midcap IT companies. There will be the usual run-of-the-mill IT services companies which are probably in a smaller format of the larger ones and then there are the vertical focused companies which have their own niche and will continue to do well.

The largecap IT space overall has shown anaemic growth and nothing great is coming out of the commentary as well. What is your outlook there? Also talk to us about midcap IT where numbers are good, but their valuations are not very cheap either?
Shiv Chanani: IT is a pretty interesting space at this point of time where probably the entire space is going through what we call the corridor of uncertainty. So, when you look at one layer below which is the underlying customers of the IT companies, most of them which are in the US, one can perceive the kind of uncertainty that they are going through because you do not know when the rate cuts are going to be, how much of those rate cuts would actually take place.

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Then, of course, as you go forward in the Q4 of the calendar year, you will be looking for the elections there as well. I