Cognizant Predicts Relatively Slower Growth in 2013
Added On:12/6/2012 9:04:00 AM
This might not sound great to the Indian Information technology sector but Cognizant Technology Solutions has hinted a slightly slower growth rate in the next year. This, in turn, is likely to impact Indian IT shares.
“Cognizant's growth expectations imply an 8-14 percent growth at best for Indian IT services exporters,” added brokerage CLSA.
The upsurge projected by company is 20 percent lower in comparison to the year 2012. Industry experts said that, “Cognizant's earnings outlook is a bellwether for the earnings of other Indian IT firms.”
In contradiction to the above, Kishore Ostwal, chairman of CNI Research added that "This is just a knee-jerk reaction. With the rupee at 55 levels, the third-quarter earnings cannot be bad for the IT sector."
According to Nasscom, the industry regulatory body, Indian IT services exports are expected to grow at 11 per cent, that is a bit down from what was earlier anticipated being 11 to 14 per cent during the fiscal year 2013. Infosys and Wipro are expected to grow at slower pace during the same period. Whereas HCL Technologies and Tata Consultancy Services, are expected to reach new heights.
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