Talking to ET Now, : Sunil Subramaniam, CEO, Sundaram Mutual, says while in short-term, IT may underperform, with a to-three-year outlook, this pack will deliver decent returns to investors.
Edited excerpts:
What explains this sudden sharp crack in IT especially given the outperformance in the entire sector yesterday?
This is a temporary move. It is basically this H-1B visa and the US dollar kind of uncertainty. The long-term view on the IT sector does not change which is fundamentally that IT sector has moved from a very high growth industry to a more stable organic growth industry. The revised valuations reflect that and we believe that the companies have good business models and so over the medium term, they are very good picks. Short term, there will always be these fluctuations. I do not think we are going to overreact to these kind of events.
