MARKET EYE-Indian tech shares extend fall on outlook worries

Thu Dec 6, 2012 11:55am IST

Related Topics

Stocks

   

* 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)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Jaitley's Health

Jaitley's Health

Finance minister back in hospital for check-up.  Full Article 

Modi's U.S. Visit

Modi's U.S. Visit

Modi to observe strict fast during maiden trip to U.S.  Full Article 

Mangalyaan

Mangalyaan

India's Mars mission a step closer to success with engine test  Full Article 

Shortage of Coal

Shortage of Coal

Coal import rush leads to port congestion  Full Article 

Alibaba IPO

Alibaba IPO

IPO ranks as world's biggest after additional shares sold   Full Article 

Bumper Sales

Bumper Sales

Apple sells more than 10 mln new iPhones in first three days  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage