Abhishek Basumallick, Chief Investment Adviser, Intelsense Capital, says “the problem with IT, especially IT services, is that until and unless there is very clear visibility of growth in the US market, the buyers or the clients do not tend to go and start giving new projects. They have always been cautious in giving out new … Read more
Varun Saboo, Head Equities, Anand Rathi, says we are seeing all the midcap IT companies coming and giving a higher guidance versus fears settling in after Infy numbers. I do not see any challenge. It was more, Infy specific, probably a quarter’s problem. One has to keep an eye on TCVs and how things shape … Read more
It is better not to be very bullish on IT stocks at this stage because there is uncertainty and delay in decision making. US financials are a big segment for many of these companies and they are suffering. It is tough to build a bull case although the stocks have underperformed significantly, says Sandip Sabharwal, … Read more
“In our portfolio, we have players like Persistent and . Initially, in the next couple of quarters, there will be low growth but over the next two to three years, they can do more than 10-12% kind of revenue growth because the headwinds of rising wage hike and other related costs are almost behind us. … Read more
“Once the next quarter earnings commentaries come out and things settle down, that will be the opportunity to buy because longer term, I still think Indian IT is a good story because of the huge cash they generate, the buybacks they do and the dividends they pay. But I do not think that the slowdown … Read more
It was feared that the economic slowdown in Europe and the US would affect the IT sector, but that has not happened. Contrarily, the majority of businesses have reported strong growth, even in Europe. While the situation is volatile, companies are confident of navigating the same successfully. Source link
Synopsis Most of the revenues of the Indian IT sector comes from the US, followed by Europe. Hence, we will analyse the impact of the currency on the results of the top 4 IT companies based on market capitalisation — Tata Consultancy Services (TCS), Infosys, HCL Technologies (HCL Tech) and Wipro — both on the … Read more
Mumbai: Morgan Stanley said continued headwinds and earnings downgrade cycle in the information technology sector have rendered the risk-reward unfavourable in the near term. The brokerage has downgraded Wipro and while selectively remaining overweight on , and . “Near-term headwinds and lack of catalysts could keep sector performance under pressure,” said Morgan Stanley. The IT … Read more
Although known to be a resilient sector to invest in times of global macro uncertainty, IT stocks may continue to witness pressure this time. Neelkanth Mishra, India Equity Strategist, Credit Suisse, says he has gone underweight on IT services sector because he sees a never-seen-before challenge of revenues coming under pressure. “The challenge is that … Read more