Mahindra Satyam (up 2.31%), HCL Technologies (up 2.30%), TCS (up 1.59%), Wipro (up 1.25%), Infosys (up 1.08%) and Tech Mahindra (up 0.97%), edged higher.
The BSE IT index was up 1.07% at 5,055.52. It outperformed the Sensex, which was down 1.15% at 16,172.70.
The BSE IT index had outperformed the market over the past one month until 22 September 2011, gaining 6.19% compared with the Sensex’s 0.12% gain. The index had underperformed the market in past one quarter, sliding 12.86% as against 6.78% decline in the Sensex.
The partially convertible rupee was at 49.82/83 per dollar, after hitting 50 in a one-off deal, its weakest since 14 May 2009. The rupee had closed at 49.57/58 on Thursday, 22 September 2011. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion’s share of revenue from exports.
Infosys executive co-chairman S. Gopalakrishnan on 8 September 2011 said clients are unlikely to cut their technology budgets for 2011, though they may end up cutting them for next year. He also warned that clients may hold back spending budgets earmarked for this year. Infosys had earlier said that it is witnessing delays in decision-making by clients.
TCS on 13 September 2011, said the demand for outsourcing technology services continues to be good, although economic uncertainties in Europe remain the biggest concern for the technology major. TCS is cautiously optimistic about the demand for outsourcing services as clients remain wary of spending in an uncertain economic environment, S. Ramadorai, vice chairman, said in a media interview.
The National Association of Software and Services Companies, or Nasscom, the main software trade body on 23 August 2011 reiterated its estimate of the industry recording 16%-18% growth in export revenue this fiscal year. Nasscom had in February 2011 forecast the industry’s export revenue at $68 billion-$70 billion for the fiscal year that started on 1 April 2011. Nasscom has reiterated estimate of growth in export revenue this fiscal year despite fears of economic troubles in the main outsourcing markets viz. the US and Europe.
Source:http://www.indiainfoline.com/Markets/News/IT-shares-reboot-as-rupee-hits-50-against-dollar/3945528741
