Recommendation: Buy
The IT industry has been under pressure recently due to worries about the US recession. The problems in the developed economies will affect business flow over the next few quarters. But the past experience of recession in 2001-03 shows us that cost-cutting pressures in a downturn can actually give a boost to outsourcing.
Infosys remains the best bet in the industry with world class management and the best risk management systems. Available at a P/E of 12.5, I would strongly recommend Buy call on this stock with a price target of Rs 1,800 over long term (20-24 months).
