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Stocks of information technology companies are seen trading in a range next week as the positive of companies saying that the growth guidance set by industry body NASSCOM is achievable, will be offset by the correction following the rise over the past few weeks. On Tuesday, NASSCOM said it expects Indian IT companies' exports to grow 12-14% in 2013-14 (Apr-Mar), against 10.2% in the current financial year, on expectations of higher discretionary spending by clients and improved business environment. In November, NASSCOM had trimmed its growth guidance for 2012-13 to "around 11%".
In 2013-14, NASSCOM expects Indian IT companies' domestic sales to grow 13-15%. It expects the industry's exports at $82 bln-$87 bln and sees domestic revenue rising $12 bln-$15 bln. While, Tata Consultancy Services said it is confident of beating the growth guidance set by the industry body, Wipro Chief Executive Officer T.K. Kurien and Infosys Executive Co-Chairman S. Gopalakrishnan said the projections are achievable. Infosys and Wipro, however, did not provide a growth target for 2013-14. NASSCOM's guidance is based on broad feedback loop from companies and captives. Uptick in guidance does indicate that CEOs believe FY2014E (2013-14 estimates) could be better than FY2013E. However, yesterday, stocks of most IT companies ended down from last week on some consolidation following the rally last week. Wipro shares saw a steep decline after India Index Services and Products, a joint venture between the NSE and credit rating agency Crisil that maintains Nifty index, said Wipro would be excluded from the 50-share benchmark index with effect from Apr 1.
Stocks of information technology companies are seen trading in a range next week as the positive of companies saying that the growth guidance set by industry body NASSCOM is achievable, will be offset by the correction following the rise over the past few weeks. On Tuesday, NASSCOM said it expects Indian IT companies' exports to grow 12-14% in 2013-14 (Apr-Mar), against 10.2% in the current financial year, on expectations of higher discretionary spending by clients and improved business environment. In November, NASSCOM had trimmed its growth guidance for 2012-13 to "around 11%".
In 2013-14, NASSCOM expects Indian IT companies' domestic sales to grow 13-15%. It expects the industry's exports at $82 bln-$87 bln and sees domestic revenue rising $12 bln-$15 bln. While, Tata Consultancy Services said it is confident of beating the growth guidance set by the industry body, Wipro Chief Executive Officer T.K. Kurien and Infosys Executive Co-Chairman S. Gopalakrishnan said the projections are achievable. Infosys and Wipro, however, did not provide a growth target for 2013-14. NASSCOM's guidance is based on broad feedback loop from companies and captives. Uptick in guidance does indicate that CEOs believe FY2014E (2013-14 estimates) could be better than FY2013E. However, yesterday, stocks of most IT companies ended down from last week on some consolidation following the rally last week. Wipro shares saw a steep decline after India Index Services and Products, a joint venture between the NSE and credit rating agency Crisil that maintains Nifty index, said Wipro would be excluded from the 50-share benchmark index with effect from Apr 1.
