MARKET EYE-Indian tech shares extend fall on outlook worries
* Indian technology shares fall for a second day, with Cognizant's SEC filing clouding revenue outlook for the sector. * Cognizant Technology Solutions Corp, in a filing to the SEC on Tuesday, said its top executives will receive 100 percent of their performance-linked shares if the company achieves revenue of $8.5 billion next year, a 16 percent rise over its projected 2012 revenue. * The filing implies that CY13 growth would be lower than the company's outlook for CY12. * "Based on historical trends, Cognizant's annual guidance corresponds with revenue growth corresponding to 100 percent of performance units," IDFC said in a note. * Barclays Capital, however, feels that while Cognizant may see a slowdown, it does not pose an incremental risk to Barclays' FY14 growth forecasts of 15 percent for TCS and 13 percent for HCL Tech. * "Cognizant's growth premium to Indian IT vendors has diminished in the past two years due to its larger revenue and growth base," Barclays Capital said in a note. * An additional negative may come from the rupee. Credit Agricole believes the government winning the vote on foreign direct investment in multi-brand retail will continue to help rupee. It expects the rupee could rise to 52 per dollar by end 2013. * Infosys Ltd down 2.4 percent, Tata Consultancy Services is down 2 percent, while HCL Technology is down 2.1 percent. (firstname.lastname@example.org)
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