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A maturing market amid the mayhem
Solid earnings for IT companies
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The infotech index rallied 2.8 percent on Thursday with stocks such as Patni Computer, TCS, Wipro and Infosys posting decent gains.
Patni Computer, the top gainer in the index, rose over 12 percent after the company announced a 14 percent rise in Q1 profits. A company official said it will seek acquisitions in Europe and the Asia-Pacific to help lower its dependence on the United States.
The results season has been good for this sector, with top firms like Infosys and TCS beating forecasts. Earlier in the month, Infosys beat estimates with a 17 percent rise in quarterly profit, whereas TCS posted a 22 percent rise.
Infosys stock has rallied over 25 percent since June and is currently at 2010 rupees. The stock crossed the 2,000 rupee mark a few days ago, a level it had not seen for over 15 months.
Do you think it is a good time to invest in this sector?
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If Reliance continues to remain in a state of limbo,the leadership mantle may shift to Infosys.The smart rise in IT sector is perplexing as this sector is moving too much ahead of a recovery.
IT sector is obtaining repeat orders by cutting on rates.US is showing an early sign of recovery but Europe is still not out of woods.Prez Obama sounds ambivalent about shifting of jobs to India.But strong dollar at 48/49 is helping this industry boost its profits.
IT hiring has not started.Moreover there is a wage freeze.Does this all mean that slow down is continuing?
Infosys is giving a lead to market.It could be moving towards 2,500 level by the year end.
I love Infosys and TCS..