Indian infotech shares hit on Cognizant Technology SEC filing

Dec 05 2012, 11:37 IST
Comments 0
SummarySentiment was also dampened by Cowen's downgrade of Infosys.

* Indian technology shares down on fears that Cognizant Technology Solutions Corp may issue a lower revenue growth guidance for 2013 based on compensation targets for top executives, dealers said.

* Cognizant, in a filing to the SEC on Tuesday, said its top executives will receive 100 percent of their performance-linked shares if the company achieves revenue of $8.5 billion next year, a 16 percent rise over its projected 2012 revenue.

* The rise would be lower than the 20 percent growth, equivalent to revenue of $7.34 billion, projected by the company in 2012.

* Dealers say Cognizant's earnings outlook is a bellwether for the earnings of other Indian IT firms.

* Sentiment was also dampened by Cowen's downgrade of Infosys Ltd to 'neutral' on Tuesday due to fears of a protracted revenue growth recovery.

* "This is just a knee-jerk reaction. With the rupee at 55 levels, the third-quarter earnings cannot be bad for the IT sector," said Kishore Ostwal, chairman of CNI Research, expecting technology stocks to bounce back.

* Infosys down 2 percent, Wipro Ltd 1.9 percent lower, Tata Consultancy Services 0.6 percent down, against the broader BSE index, which is up 0.2 percent.

Stocks More on Wipro

Company INFO More on Infosys

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...