Currently, old economy stocks are available at cheap prices while new economy stocks are available at old economy prices. Refinery and petrochemical sectors are currently our favourite in the old economy sector. We believe that the slowdown in the US will definitely have an impact on the Indian IT companies. But what has happened is that people have been overtly concerned and reacted very adversely leading to sharp decline in IT stock prices. People are looking at the prices first and then defining the logic.
People feel because prices have declined there is something wrong in the sector and the company.
Last year also people behaved irrationally in the same manner. But this time even though companies have declared good results, people are pushing down the company's throats that the results will be bad. We are also concerned about the impact of slowdown on IT companies but not greatly concerned. We think this is a good opportunity to buy technology stocks. You must think of when to buy and now with these prices in the technology sector, it is not correct to sell.