Motilal Oswal Asset Management Company on Friday said it's upbeat on Larsen and Toubro (L&T) as infrastructure sector is likely to see more investments from government ahead of elections.

In an interview to CNBC-TV18, Gautam Sinha Roy, fund manager, said, "The midcaps and smallcaps are no longer expensive. So the major thing that has changed for the market is valuations, which are now reasonable and maybe the growth story has changed from one sector to other."

Sector specific, Roy said the house remains invested in the IT space as the cost pressures are a bit of worry and the demand still looks reasonable, "Structurally, we are not very worried about any changes, but it does lower the PAT growth that investors will get because of incremental margin pressures."

He said the IT space may not be the best performing sector in 2019, but it's not the end of the story for the sector as they remain a credible play on digital, which is high growing part of information technology.

With regards to autos, he said, "The long-term growth story is still intact on back of penetration and premiumisation. For both Maruti and Eicher Motors, valuations have changed. The near-term outlook looks a bit clouded on both demand and growth side, but long-term investors can look at this an opportunity to buy."