Tata Tech, Infosys & Tejas: SMIFS' Sharad Avasthi shares view; flags caution on precious metals

Sharad Avasthi, Head of Research (PCG) at SMIFS, on Wednesday raised caution around precious metals while sharing his outlook on select IT stocks, including Tata Technologies Ltd, Infosys Ltd and Tejas Networks Ltd.

Commenting on gold and silver, the market expert said the risk quotient remains elevated at current price levels.

Sharing his broader perspective on the IT sector, Avasthi told Business Today, "On balance, we would see that more ramp-up is happening with respect to the deal wins that the companies have had over the period of time. As of now, there's not much to talk about. As and when more companies come out and how the outlook pans out with respect to the global scenario, that is something we are keenly looking at. Right now, we are still talking about a small set of companies that have come out with their quarterly numbers. So, there's not much to take away from whatever we've seen."

On Tata Technologies Ltd, he indicated that management commentary has been encouraging so far. "The company could see a turnaround with the type of management commentary that we've heard. The quarterly results are still to come out," the expert added. Tata Technologies is scheduled to announce its Q3 earnings on January 16.

Turning to Tejas Networks Ltd, Avasthi acknowledged potential improvement but highlighted the associated risks. "I think the worst may be behind us and from here we could see some improvement. But, it is again a risky call as the company has not been able to perform up to the benchmarks over the past few quarters," he said.

Speaking on Infosys Ltd, which is set to announce its Q3 results today, Avasthi said the company's upcoming numbers and guidance would be under close watch. "The forward-looking numbers would be interesting to watch out for. In terms of guidance, there is a possibility it would improve. We are keenly watching the quarterly numbers and large deal wins would be something we would be focussing on," he stated.