If you are looking to buy Indian IT stocks then the main trigger will be the currency weakness, said Saurabh Mukherjea, founder of Marcellus Investment Managers.

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“The weakness in export performance does point to the rupee being significantly overvalued,” Mukherjea told CNBC-TV18 on Thursday.

Talking about the IT stocks, he said, “Buy champion companies and sit back and let them compound and with our TCS holding; both for our clients’ portfolio and in my own portfolio, my view is a stock like TCS, I will prefer to ride through it.”

“On second rung IT companies face competitive pressures that will force many of them to gradually consolidate,” Mukherjea said.

On the consumption front, Mukherjea said, “With inflation muted, with RBI being willing to keep monetary policy easy there is a good chance that not only will we see 25 bps rate cut in August, we might even see 50 bps rate cut with oil behaving itself.”

“Liquidity outlook is good for our country, the currency is behaving itself for now and given that backdrop, well-run private sector banks, well-run NBFCs will consolidate market share. So 2 or 3 well-run banks, couple of well-run NBFCs, if you look at the outlook for them over the next 2-3 years, its immensely positive, they will consolidate the lending economy,” he added.

With regards to the FMCG space, he said, “A stock like ITC, we have held it in clients’ portfolios for a long time and I hold it. I think it’s a straight forward opportunity for long-term investors to buy, sit back and make money.”

Mukherjea said he believes ITC will make money from current levels.

“Nestle, Pidilite, Asian Paints and Marico – these are all holdings in our portfolios and we continue to believe that this sector will make steady money for us,” Mukherjea added.