Macquarie downgrades IT services sector

Citing demand concerns as Infosys delays joining dates for new hires

Macquarie Equities Research has downgraded 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 rupee.

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 MindTree .