Indian software companies are expected to gain within the next few quarters with the US economy showing strong signs of recovery, while telecom equipment makers will have to wait for some more time to see good growth, said Bhavin Shah, the newly appointed managing director and head of technology equity research in Asia Pacific, JP Morgan.
Shah's appointment was announced here on Monday. He joins JP Morgan from Credit Suisse First Boston (CSFB).
"Several domestic infotech companies will continue their hunt for acquisitions in the US and Europe. However, top IT companies may not tap overseas markets as they have strong balance sheets and have already raised funds," Shah said.
However, companies which are planning to tap the primary market could look at both domestic and overseas markets. Companies such as Bharti Tele-Ventures and Tata Consultancy Services could tap international capital markets, he added.
According to Shah, though leading IT companies were looking at diversifying into markets such as Europe, Japan and China, the key market would still be the US since it accounts for a chunk of their existing income and clients.
On telecom equipment makers, Shah said, "Telecom equipment makers are already reeling as service firms are not aiming at expanding network due to lack of funds."
"As a part of the Asian technology research sector, I have been following the Indian IT industry for more than 5 years. JP Morgan has a strong operations in India, both in banking and research. I look forward to working with the technology research team in India to enhance the powerhouse research that our clients demand," he said.
Shah, 35, has been tracking the semiconductor and information technology sectors in Asia, including Indian IT firms such as Infosys, Wipro, HCL and Satyam. Before joining CSFB in 1996, Shah was with Digital Equipment Corporation, where he designed high-speed microprocessors.
