Money on the markets

BSE IT index gains nearly 2 pct

IT stocks posted decent gains on Wednesday, pushing the sectoral index up nearly 2 percent as robust profits from U.S. retailing giants boosted confidence in the corporate outlook in the world’s largest economy.

Mphasis topped the BSE IT Index with a 3.8 percent gain, followed by HCL Tech which rose 3.1 percent. Bigger players like TCS and Infosys posted gains of 2.1 percent and 1.92 percent respectively.

Only two stocks in the index – Patni and Tech Mahindra – ended in the red.

The sectoral index is up marginally this month. Would you invest in an IT counter at this stage?

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.

Shares in TCS rose as much as 4.5 percent to a record high of 871 rupees in trade. Infosys gained 3 percent while Wipro rose 4 percent.

The BSE IT Index, which saw all stocks closing in the green, ended with gains of 3.2 percent as the top sectoral gainer.

The index has gained 6 percent since July. Are you optimistic about the future of these stocks?

BSE IT Index drops, Infosys leads the decline

The BSE IT Index ended 2.68 percent lower on Tuesday weighed down by Infosys Technologies’ surprise 2.6 percent drop in April-June profit.

The country’s No. 2 outsourcer said before market hours its sales contribution from Europe fell to about 20 percent from nearly 25 percent a year ago and 23 percent in January-March.

Infosys, which led the BSE IT Index decline, dropped 3.4 percent, while Tech Mahindra and TCS slipped 1.4 percent and 2.09 percent respectively.

Top Indian service exporter TCS is schedule to declare results on Thursday.

Aptech Ltd and NIIT however bucked the trend, gaining xx percent and xx percent respectively.

“People will now adjust their expectations for other IT majors like TCS and Wipro,” said Tejas Doshi, head of research at Sushil Finance.

Do you think IT stocks are likely to further more?

Infosys rises on hopes of better results

Shares in Infosys, India’s second-largest software exporter, rose as much as 1.4 percent to a 52-week high of 2,911.55 rupees, on expectations it would raise its dollar revenue forecast for the full year when it unveils results on Tuesday.

The scrip pared morning gains to close 0.8 percent higher at 2894 rupees with volumes of 0.1 million shares.

“Infosys is expected to outperform its forecast and upgrade its full-year outlook; plus it is good fundamentally,” said Harit Shah, IT analyst with domestic brokerage Karvy Stock Broking.

Most analysts expect Infosys, which reports June quarter results on Tuesday, to raise its revenue growth guidance in dollar terms for 2010/11 to 17-19 percent from 16-18 percent given in April.

Do you think Infosys shares will touch new highs tomorrow?

Infosys shares hit record high

Shares in Infosys Technologies, India’s second-largest outsourcer, rose as much as nearly 2 percent to a record high of 2,882 rupees on Friday on optimism about quarterly earnings next week.

The company unveils its quarterly earnings on June 13. Its earnings are often dubbed as a trendsetter for sectoral peers.

India’s leading information technology exporters should report robust quarterly sales, thanks to improving demand from their mainstay financial clients, but Europe’s debt crisis and rising salaries could cap their outlook.

Macquarie expects Infosys to raise fiscal year 2011 U.S. dollar revenue growth guidance to 17-19 percent from 16-18 percent.

Would you invest in Infosys ahead of its earnings?

Good day for IT stocks

The BSE IT Index ended 3.09 percent higher on Tuesday, mainly led by IT bellwether Infosys Technologies which rose 3.6 pct.

The main index however closed 0.17 percent lower, weighed down by weakness in global markets.

Outsourcer Infosys forecast stronger-than-expected annual revenue growth of 16-18 percent, noting that a pick-up in global technology spending was improving demand for outsourcing but said margins would be hit by a rising rupee. TCS, India’s top software exporter, surged 2.8 pct while rival Wipro closed 2.4 percent higher.

Do you think IT stocks currently make for good investment, with signs of a pick-up in global IT demand?

Strengthening rupee hurts IT counters

Hurt by an appreciating rupee, the BSE IT index slipped 1.7 percent on Monday and ended as the worst sectoral performer among indices. The benchmark Sensex however ended 66 points higher on hopes of good earnings.

Top sectoral losers NIIT and Mphasis ended down 3.7 percent and nearly 3 percent respectively.

Bigger players too had a bad day, with stocks like Infosys and TCS slipping 2.2 percent and 1.7 percent respectively.

D H Pai Panandiker, president of RPG Foundation, is of the view that the rupee will harden further to 42 versus the dollar if the Reserve Bank does not intervene.

The BSE IT index has gained 4.7 percent this month. In the current scenario, will you buy or sell stocks in this sector?

Good day for IT stocks

The BSE IT index gained over 1 percent on Monday and ended as the top sectoral gainer in a Mumbai market that rose 45 points.

Shares in Infosys gained 1.5 percent to 2,568 rupees and was the top contributor to the benchmarks rise.

Among the sectoral components, NIIT Tech rose 2.2 percent and TCS closed 0.7 percent higher.

Export-driven outsourcers led the rise on hopes for better order flow from the United States, their biggest market, as a surprise discount rate hike by the Federal Reserve last week indicated a recovery was underway.

India’s export-driven IT sector has sought an extension of a key tax benefit scheme to beyond its 2011 deadline in the budget.

Would you invest in this sector before the Budget?

BSE IT Index rises over 2 pct

Export-focused software stocks did well on Tuesday, helping boost the BSE IT Index 2.5 percent to its second straight day of gains.

The broader market ended 0.6 percent up with financials being among the losers.

Sensex heavyweights Infosys, Tata Consultancy Services and Wipro rose 2.9 percent, 1.4 percent and 2.4 percent respectively.

IT stocks have been getting support from the depreciating rupee which hit a seven-week low in the previous session.

All stocks in the IT Index, except Moser Baer, NIIT Tech and Tech Mahindra, ended in the green.

The index has given a net negative return of over 4 percent so far this year. Do you see an uptrend in this sector?

HCL Tech drops over 5 pct

Shares in Software services firm HCL Technologies dropped on Monday as the company missed forecasts with quarterly profit dragged down a fifth by declining other income, forex losses and higher costs.

The counter ended 5.6 percent lower at 361.15 rupees with volumes of 0.3 million shares.

The BSE IT Index ended 1.3 percent lower. The fall in the index was led mainly by Tech Mahindra, which dropped 7.3 percent, Patni Computer, which was down 3.4 percent, and Financial Technologies which ended 3.02 percent lower.

Shares in HCL, which the market values at over $5.5 billion, had climbed 9.3 percent in the December quarter, underperforming the sector’s 13.5 percent increase.

Would you invest in IT stocks at this stage?