Skip to main content

News -IT

Too early for optimism on IT (Live mint.com 6th Feb 2008)The Bombay Stock Exchange’s IT (information technology) index is the only sectoral index to have fallen by less than 10% from its closing high in January. One of the reasons for the lower decline is the fact that IT stocks had already underperformed by a large margin in 2007.
But another factor was the bout of buying since late last week, on the premise that IT stocks were available very cheap. Prior to the relief rally, trailing valuations on frontline stocks were around 18 times trailing earnings. Now, valuations have reverted to about 20 times.
Remember, core operating profit has grown by just 18% for Tata Consulting Services Ltd (TCS) and Infosys Technologies Ltd in the first nine months of this fiscal, so that doesn’t leave much on the table. (For Wipro Ltd and Satyam Computer Services Ltd, it was even lower at 8% and 15%, respectively.) So far, the sound bytes from software and software services providers have been cautiously optimistic. While technology companies such as Intel Corp., which cater directly to end-consumers, have been hit by the economy slowdown in the US, software providers such as SAP AG and Oracle Corp. have sounded optimistic while releasing their December-quarter results. More
Labels:

Comments

Post a Comment

Popular posts from this blog

Jyoti Structures bags Rs 253 cr worth orders

Jyoti Structures on Tuesday said it has bagged two orders worth Rs 253 crore from Uganda Electricity Transmission Company Ltd and Eskom Enterprises (Pty) Ltd for construction of transmission lines. The company has bagged Rs 160-crore order from Uganda Electricity Transmission Company Ltd for construction of transmission lines and sub-stations. Besides, the company's joint venture company Jyoti Structures Africa (Pty) Ltd has bagged a contract for Eskom Enterprises (Pty) Ltd, the electricity utility of South Africa for construction of transmission line. The scope of the order from Uganda Electricity Transmission Company includes supply and erection of Bujagali Interconnection Project, the manufacturer of transmission line towers informed the Bombay Stock Exchange. The contract valued at around $39.64 million (Rs 160 crore) is to be executed in 24 months, the company said, adding the company would construct 220 kV and 132 kV transmission lines and substations.
Post a Comment
Read more

Company News

ITI Ltd seeks Rs2,000 crore aid from government (Live mint.com 26th Dec 2007) The funds are being sought to wipe out accumulated losses of Rs2,225 crore and to obtain working capital for telecom equipment manufacturing. According to a company official who did not wish to be named, a committee has been set up by the Centre to finalize the package. More
Post a Comment
Read more

Inflation hits 42-week high of 7.57%

Inflation rose to a 42-week high of 7.57 per cent in the 12 months to April 19, higher than the previous week’s annual rise of 7.33 per cent, largely on account of an increase in food, metal products and industrial fuel prices, official data showed. Analysts said that the inflation of 7.57 per cent was “slightly higher” than their expectations and this could be due to price increase in tea and certain items in the steel group. India’s wholesale price index (WPI) based inflation now stood highest since November 13, 2004, when it was 7.68 per cent. Economists expressed confidence that the recent fiscal and monetary measures would yield results in the coming weeks. They, however, noted that inflation was unlikely to return to the comfort zone of the Reserve Bank of India any time this fiscal. “There could be some easing of food inflation given the good wheat production and likelihood of good monsoon. I see some temporary relief on food side. But commodities are tough to predict. The infla...
Post a Comment
Read more