Has that upped investor sentiment pulling IT stocks higher on Indian bourses?
That is precisely the reason the frontline Indian IT stocks are having a run-up. Cognizant has a similar business model to the Indian IT companies like Infosys and TCS in similar geographies with almost same profile. We keep a close eye on Cognizant and Accenture results as it gives us a fair idea of how will their Indian counterparts perform. TCS touched an all time high of Rs 866 trade today, and Infosys is also up nearly 3%. What is your call on these two stocks? I am positive on TCS as its Q1 numbers beat topline and bottomline expectations. I am also positive on HCL Technologies and Infosys, even though Infosys did not meet street expectation. We have a Buy call on both Infosys and TCS with target of Rs 3,150 and Rs 940, respectively for FY11. What is your outlook for the IT sector? Cognizant gave a positive guidance, for CY10 the company said aggregate revenue will be rise by 36% to $4.46 billion. Therefore, we expect Infosys to beat guidance of 25% revenue growth y-o-y for FY11.
