Why IT looks safer & more defensive compared to other segments? Amnish Aggarwal explains

economictimes.indiatimes.com:

Amnish Aggarwal, Head of Research, Prabhudas Lilladher, says in the IT sector, a lot depends on how the growth momentum pans out. But there are a lot of expectations built into what happens in the developed markets once Trump assumes the chair next month and that is getting reflected. Also the domestic growth scenario looks quite mixed in many sectors. So, IT looks to be safer and more defensive in comparison to some of the segments.
If you are looking at the sector-wise breakup today, PSU banks are on the back foot. But having said that, railway stocks are doing quite well, while defence has managed to come back. In fact, other industrials and public sector entities have been doing well. Does that make you believe that perhaps the dip that we saw in the public sector entities, whether defence, whether railways and all of that, is behind us and now the buying would resume?
Amnish Aggarwal: One cannot put all the PSUs in one basket per se because when it comes to railways, defence and some of the other industries related to capital goods, engineering, EPC, construction, etc., there were no order flows which came in Q1. In the second quarter it picked up, but now we are in the last four months of the year, and we will see more and more order announcements happening across these segments.

That is reflected in the strong outperformance of many of these sectors. As the order announcements are likely to continue for the next couple of months, the interest levels will continue to be high. But one needs to be very