Money on the markets
A maturing market amid the mayhem
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?
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.
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.
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.
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.
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.
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.
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.