Shares of information technology (IT) companies are in demand and trading higher by up to 10% in otherwise subdued market on expectation of strong revenue growth during the recently (April-June) concluded quarter.
Infosys, Tata Consultancy Services (TCS), MindTree, HCL Technologies and Wipro from the frontline IT stocks are up 1-3%, while R S Software, eClerx Services, Mastek, Zensar Technologies and Polaris Financial Technology have gained between 5-10% on the Bombay Stock Exchange (BSE).
S&P BSE IT index, the largest gainer among sectoral indices, is up nearly 2.2% or 187 points at 9,516 compared to 0.32% rise in S&P BSE Sensex at 1340 hours.
Since June 26, the IT index has surged 5% after the Accenture reported a better-than-expected 7.5% rise in quarterly net revenue, led by a rebound in demand for its consulting services, where it competes with Indian IT companies. The benchmark index has gained 4% during the same period.
Mohit Jain and Princy Bhansali, analysts at Anand Rathi Research expect a better revenue growth for IT companies primarily driven by seasonal acceleration.
Cross-currency movements are likely to boost revenue growth by 40-60bp quarter-on-quarter (QoQ) across the top-tier, but unlikely to offset margin headwinds meaningfully, Ashish Chopra and Siddharth Vora, analysts at Motilal Oswal, said in a recent research report.
Infosys, up 3% at Rs 3,336 on BSE, is schedule to announce its Q1 results on July 11, 2014.
"We expect 3.1% qoq growth for Infosys in terms of US$ revenue growth, assuming little spillover from 4QFY14 and some benefit from deals secured in the recent past”, says analysts at Anand Rathi Research.
Infosys, Tata Consultancy Services (TCS), MindTree, HCL Technologies and Wipro from the frontline IT stocks are up 1-3%, while R S Software, eClerx Services, Mastek, Zensar Technologies and Polaris Financial Technology have gained between 5-10% on the Bombay Stock Exchange (BSE).
S&P BSE IT index, the largest gainer among sectoral indices, is up nearly 2.2% or 187 points at 9,516 compared to 0.32% rise in S&P BSE Sensex at 1340 hours.
Since June 26, the IT index has surged 5% after the Accenture reported a better-than-expected 7.5% rise in quarterly net revenue, led by a rebound in demand for its consulting services, where it competes with Indian IT companies. The benchmark index has gained 4% during the same period.
Mohit Jain and Princy Bhansali, analysts at Anand Rathi Research expect a better revenue growth for IT companies primarily driven by seasonal acceleration.
Cross-currency movements are likely to boost revenue growth by 40-60bp quarter-on-quarter (QoQ) across the top-tier, but unlikely to offset margin headwinds meaningfully, Ashish Chopra and Siddharth Vora, analysts at Motilal Oswal, said in a recent research report.
Infosys, up 3% at Rs 3,336 on BSE, is schedule to announce its Q1 results on July 11, 2014.
"We expect 3.1% qoq growth for Infosys in terms of US$ revenue growth, assuming little spillover from 4QFY14 and some benefit from deals secured in the recent past”, says analysts at Anand Rathi Research.
