Any sharp rallies in IT stocks should be used to reduce exposures: Sandip Sabharwal

Sandip Sabharwal expects tough times for IT companies due to slowing economic growth in the western economy. Disappointments in companies like LTIM can lead to significant selloffs. Investors should be cautious and use any sharp rallies in IT stocks to reduce exposures. HDFC Bank’s future is uncertain, and investors should decide whether to completely avoid it or buy on a 10-12% dip. Expectations for ICICI Bank and Kotak are not high, but a disappointment could lead to a selloff.