Infosys won't outperform the market

Investment Advisor, PN Vijay is of the view that IT stocks including Infosys Technologies will not outperforming this market for a while.

Vijay told CNBC-TV18, “I don’t think we are going to see a run away rally in tech stocks because one has been talking to banks and the feeling is that the inflows are very strong and we may sterilize about USD 15-20 billion by this ECB moved. But we will still leave the rupee very strong. So if one went into that type of argument and say rupee will not breach 41, then that doesn’t leave much for the IT companies in terms of net-net margins.”
He further added, “Ofcourse having said that Infosys did very well, if you recollect in the first quarter, they came out with very strong dollar based EBITDA margins. My own sense is that it is a fairly long-term player; there is no hurry to sell it because it is such a high quality stock. But I don’t see IT stocks including Infosys outperforming this market for a while. I belong to the old school, which says that your acquisition price has nothing to do with your selling price.”

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