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IT firms see good results
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ASIANAGE on 06 July, 2008 04:22:26
 
By Sangeetha Kandavel
Chennai
July 6: As the result season for corporates is all set to begin, analysts have
noticed that larger Indian information technology companies such as Infosys,
Tata Consultancy Services and Wipro are gaining from vendor rationalisation
exercise carried out by clients, especially in the BFSI segment.
Indian IT majors especially Infosys, TCS and Wipro could gain from the present
downturn, as banking and financial institutions in the west seek to source IT
services from a single vendor.
According to a research note released by Edelweiss, clients are increasingly
seeing advantages of outsourcing multiple processes, applications and
infrastructure to a single provider.
This, coupled with news of some thaw in the current environment, should help
provide the needed H2 visibility that investors seek.
The research report also said that companies such as Infosys, Wipro and Satyam
Computers are offsetting the pressures in the BFSI segment from traction in
telecom and manufacturing.
There are strong spending tailwinds and new opportunities in the form of cable
companies opening up to IT outsourcing as key growth propellants in this
vertical.
Edelweiss expects these companies to raise the guidance as they expect the last
two quarters to push the annual results. In other words, back-ended growth is an
ugly way of saying that most of the growth would come from third and fourth
quarters.
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FIIs bearish on S. America
By Joyeeta Dey
New Delhi
July 6: Having sold Indian shares worth close to Rs 5 trillion since beginning
of this year, the overseas investors seem to be ploughing back the money to the
bond market in India and abroad as well as equities in other emerging economies
such as in Latin America.
After a sharp rally for the past few years, the Indian stock market has been
under an intense bear grip since January this year, which has seen the total
value of all listed stocks here plunging by more than a third or over Rs
25,00,000 crore.
Out of this, foreign institutional investors (FIIs) are estimated to have
incurred a loss of close to Rs 3,00,000 crore, which is also equivalent to
nearly one-third of their total holdings before the downslide began on the
bourses. FIIs are estimated to have sold shares worth more than Rs 4,70,000
crore so far in 2008. — PTI