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.

(manoj.dharra@thomsonreuters.com)