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:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

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