Raamdeo Agarwal, MD, Motilal Oswal Financial Securities in an interview with ET Now talks about real estate and software industry.

We do see confidence level suddenly coming back among the managements in real estate. Also in software exports what is your call there because of a revival in the US capex cycle? Do you think order flow is going to lead to good stock returns in that sector?

I think in software things are shaping up much better than what we think. Some of the companies, particularly Infosys, are going to perform better than most of us expected 2-3 months back. Their currency translation, which was hurting them at some point of time on the US revenues, has also come back to much better levels. Generally, the order inflow from all over the world has been pretty good. That is what we understand and cost management has been fantastic because there is excess supply of entry level candidates.

So I think on the whole tech is doing very well and India story continues, so I do not see any major hiccup on the tech side. May be it will actually gain strength from here quarter on quarter.

As far as real estate is concerned I think it is very company specific but real estate is one of the largest opportunities right now, but the companies have gone over-leveraged, they have messed up their entire selling plan and with the kind of inventory they have, lot of order books transactions as well.

I think in this period most of the things are getting unbound and the balance sheets are getting cleaned up and probably this is the time one should start looking at these companies and putting them in portfolios for next 3-4 years.