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from Expert Zone:
India Markets Weekahead – Company results key for market direction
(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)
Infosys stumped Indian markets again but for a change -- positively. Recent management comments had built expectations of underperformance which led to cautious to negative views on the stock. Institutional investors were light on Infosys whereas the more adventurous speculators were short. And we were all caught on the wrong foot when the company declared a revenue growth as well as a net profit much better than consensus expectations.
The question is whether one should buy Infosys after this 17 percent surge? I would continue to be cautious as I believe the knee-jerk reaction is overdone. Does a better performance put Infosys back in line with the guidance given at the beginning of the year? Not really. Could this be a one-quarter wonder? It’s possible and I would await another quarter for confirmation.
The consensus on the street was that markets could be heading for new highs soon and this possibly was the biggest risk they have been facing in the short term. If not for Infosys, the markets may have broken important support levels on Friday. Unlike the underlying confidence in the past few weeks, the markets have displayed weakness in the last few days closing about a percent lower at 5952.
from Chrystia Freeland:
The Sputnik moment and the zero-sum game
The best line in U.S. President Barack Obama’s State of the Union address was his contention that “this is our generation’s Sputnik moment.”
It was smart because the essence of the idea is obviously true: Just as the Sputnik launching in 1957 terrified Americans with the prospect that they might lose their global scientific supremacy, the rise of the emerging markets, particularly China, has made them worry they could be losing their technological edge.
from Money on the markets:
Good day for technology counters
Technology shares rose on Wednesday as Indian firms cheered robust results and guidance from U.S. peer Cognizant Technology Solutions.
Cognizant on Tuesday reported a profit that topped market estimates for the sixth straight quarter, helped by a surge in discretionary projects, and also raised its 2010 revenue outlook.
from Money on the markets:
Wipro ends lower after results
Profit sales saw Wipro shares end 0.8 percent lower on Friday after the firm reported a forecast-beating, 31-percent rise in quarterly profit.
The firm said it was seeing strong business environment, which helped pull up sectoral stocks early in the day. The stock had risen as much as 4.2 percent in trade.
from Money on the markets:
Tech firms gain
The BSE IT index ended 3.9 percent higher on Tuesday as the overall 30-share sensitive index ended 0.59 percent down.
Infosys Technologies raised its annual sales forecast as big financial services clients boost orders in an improving global economy, pointing to an industry recovery.
from Money on the markets:
Infosys, HDFC Bank touch 52-week highs
The BSE Sensex closed 52 points lower on Wenesday, but many top counters touched their 52-week highs in trade, Thomson Reuters data shows.
Top IT stocks Infosys, Wipro and TCS touched their 1-year highs as the BSE IT index closed 0.7 percent higher.
from Money on the markets:
Outsourcers slide on rising rupee
Shares in top IT firms plunged on concerns the rising rupee would squeeze margins in the export-driven sector.
IT bellwether Infosys dropped 2.5 percent, while Wipro and TCS fell 4.2 and 3.3 percent respectively.
from Breakingviews:
Tech services deals count on more with less
The U.S. computer services industry is back in favor, after a decade of struggling to cut costs and compete with offshore firms from India and elsewhere. At least that would be the obvious conclusion to draw from a recent string of multibillion-dollar deals.
Xerox has agreed to buy Affiliated Computer Services for $6.4 billion while Dell is paying $3.9 billion for Perot Systems. They are picking up where Hewlett-Packard left off when it paid $13.9 billion to buy Electronic Data Systems in 2008.
from Money on the markets:
IT stocks shine in a weak market
The BSE IT index gained 2.6 percent in choppy but dull trade on Monday.
Top IT companies posted smart gains with Patni Computer leading the sectoral index with a 7 percent rise. Shares of Wipro, TCS and Infosys touched their 52-week highs.
Many of these firms reported better-than-expected Q1 numbers last month.
The rupee movement versus the dollar has also been supportive for this industry, which receives significant revenue in foreign currency. The rupee has strengthened to below 48/dollar from near 52/dollar levels in March this year.
from Money on the markets:
Market choppy on profit booking
The Sensex closed marginally lower after a choppy session on Tuesday, as investors booked profits after the market rose over 10 percent in the previous two sessions.
The benchmark closed 3.6 points down at 12,131.08, while the Nifty ended 0.2 percent higher at 3,661.90.
