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Morgan Stanley sees mixed results from Indian tech cos

Source : REUTERS
Last Updated: Tue, Jul 03, 2012 10:00 hrs
Employees work on floor of outsourcing company WNS in Mumbai

Reuters Market Eye - Morgan Stanley expects mixed June-quarter results from the top four Indian tech companies, with muted revenue guidance but a steep EPS upside.

The companies: Tata Consultancy Services , Infosys , Wipro and HCL Technologies .

The investment bank says uncertainty post June-quarter results would be an opportunity to accumulate stocks with low expectations and modest valuations, such as Infosys , HCL Technologies and Mindtree .

Shares are trading lower on recent weak economic data in the US, which is the biggest outsourcing market for Indian IT firms, and recent gains in rupee, which is at a 1-1/2 month high, are also weighing, traders say.

A firm rupee adversely affects operating profit margins of IT firms as the sector derives a major part of its revenue from exports.

Tata Consultancy Services fell 2.13 percent, Infosys declined 0.5 percent while Wipro lost 0.21 percent.

(manoj.dharra@thomsonreuters.com)




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