July 2, 2012 / 6:41 AM / 5 years ago

MARKET EYE-Macquarie downgrades Indian IT services sector

* Macquarie Equities Research has downgraded Indian IT services
sector to "underweight" from "overweight" citing demand concerns
as Infosys, which already has 30 percent of staff on
the bench, delays joining dates for new hires.
* Given the bearish outlook, Macquarie has cut ratings on
India's top three software exporters Tata Consultancy Services
, Infosys and Wipro to "underperform".
* The brokerage has also removed TCS from its Top-10 list,
replacing it with ICICI Bank.
* Infosys is delaying taking on board some of its planned 28,000
new recruits until mid-2013, underlining the slowdown faced by
India's No. 2 software services company, Indian media had
reported last month. 
* Macquarie goes "overweight" on industrials from "neutral,"
reflecting its growing optimism about a pickup in infrastructure
spending, cut in interest rates and possible appreciation of
* Among other changes, the brokerage has added Bharat Heavy
Electricals, Hindustan Petroleum Corp, Asian
Paints and Wockhardt to its model portfolio
while removing Housing Development Finance Corp and


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