Indian IT Watch for the results - Nishit Vadhavkar

The rupee has appreciated 2.7 pc against the dollar in the period jan 07 to mar 07. This means that companies who earn in dollars, their profit margins will be hit. The Indian IT companies will be the first off the blocks with their results in first week of April. Even a hint of negativeness, could lead to a trigger for correction in IT stocks which would be a good time to buy.

The Indian IT sector is a sector well insulated from domestic slowdown and with US recession still a question of debate, the IT stocks at cheaper valuations would be be a good pick in one's portfolios.

Infosys if available at around Rs 1900 levels would be a good solid pick in the portfolios.

Any correction would be an opportunity to add stocks like Vakrangee, compulink silverline, mindtree.

Mindtree the delivery percentages are 3-4 pc every day on the NSE. Pure satta is taking place in Mind tree, if the IT stocks correct temporarily, mind tree will surely be available at Rs 600 - Rs 650 levels.

To buy small caps and mid-caps its better to wait till the UP elections are over. The recovery in the nifty though almost vertical is misleading. The mid caps are languishing at levels 10-20 pc lower than what they were when nifty was 3850 last. The nifty has been taken up reliance, bharti reliance communication.

I feel distribution of stocks to retail investors is taking place. One would do well to sit on the sidelines and wait. if one has to buy it has to be the big boys like reliance, infosys, bhel, and larsen and toubro where in case of any correction the downside risk is limited.

Sometimes sitting on cash also leads to portfolio appreciation in the long run.

The bonuses of the fund managers are fixed on NAVs at the end of the financial year. that can also pratly explain why the index is running up.