Should you invest in IT stocks? Nitin Raheja explains

economictimes.indiatimes.com:

«And if you really look at the market in terms of what is really happening out here is that you are seeing a sector rotation happened across markets. As each and every sector is getting run up, people are looking for where things are cheaper.

And I think clearly the results that have so far come out have indicated that the deal pipeline is pretty good,» says Nitin Raheja, Julius Baer Wealth Advisors.Cautious on the IT pack is that the case, are you also cautious about IT or things are looking better post hearing the three IT majors?The IT pack, it has always been our belief that IT is a long term story that is going to play itself out and you are going to have these cyclical slowdowns in the middle just as what we are seeing today. Now having said that the kind of connection that a lot of these IT packs saw over the last six months has actually made them very attractive from a valuation perspective.

And if you really look at the market in terms of what is really happening out here is that you are seeing a sector rotation happened across markets. As each and every sector is getting run up, people are looking for where things are cheaper.

And I think clearly the results that have so far come out have indicated that the deal pipeline is pretty good. While there is yet the impending slowdown that clients are doing in terms of IT spending, but the deal pipeline remains robust.

And given the kind of correction that we have seen in the entire IT pack, the kind of bounce back that we are seeing and we are in bull markets where typically you are looking for the next sort of sector which is cheaper so in that sense, I am not really surprised. I do not see them running away but clearly I think this was something which was waiting