Investors churning portfolio

Nobody is going to buy defensives stocks like those from IT, when it is highly likely that we are going to have a stable government that is going to push economic growth. A tactical shift is taking place from IT to economy related stocks including banks, infra and capital goods.

Sharp gains in rupee

The rupee has appreciated against the dollar from a historic low of 68.81 seen in Sept 2013 to the current levels of Rs 60.25. That's not good news as gaining rupee against the dollar tends to dent IT companies revenues in Indian rupees. 

Overvaluation

The NASDAQ last week fell 3 per cent in a single trading session, as investors heavily sold technology stocks, largely as they felt they were overvalued.

Not encouraging set of results

Even as we write the results from global heavyweights, Google and IBM announced in the US have been far from impressive. This may have some rub-off effect.

Not very encouraging revenue projections

Growth projections continued to remain subdued, particularly from heavyweight Infosys. Apart from HCL Tech, most others IT companies have shown far from stupendous growth.