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Are top-tier IT stocks good buy at current levels?

Created by : Archana Singh, Relationship Executive, ICICI Bank  | 03 31 2010 11:55:52 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Keywords : markets valuations it stocks
Activity:  213 views;  last activity : 07 06 2010 20:18:09 +0000

IT stocks have galloped to new highs in the past few trading sessions. The rally in these scrips, which has beaten the volatility in the broader market, is fuelled by expectations of recovery in the global demand scenario and a benign rupee-dollar rate. So, investors can increase their holdings in top-tier players given the possible buoyancy in overall sector fundamentals. Though IT stock prices are at new highs, their valuations still lag their all-time high levels. This indicates that valuations have yet to enter what experts call the overheated region.

The period of deceleration now seems to be over. Closing large, multi-year deals has become easier again. This is likely to bring in more business to Indian players. After controlling employee costs by freezing salaries and cutting headcount during the slowdown period, most top companies have offered increments and variable pay hikes. They have also stepped up hiring new talent.

So users, are top-tier IT stocks good buy at current levels?

  
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I think offshore IT companies are going to grow at a faster pace in coming years. This is what happened after 2001 recession. There is lot of potential market left untapped.
By Ravi , IT PMO, Cricket Communications  | 03 31 2010 17:40:19 +0000
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most of the stocks in IT sector have reached there 52 weeks high, will have to wait for next quarter earnings when the stimulus plans and measures taken by the govt begins to diminish. The market will move more side ways and investors will certainly look to book their profits on current level.  


By akash , project management, Emerson export engineering center, pune  | 04 05 2010 11:37:06 +0000
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itzzz waste.....
By Manjunath , Auditor, VETA  | 04 02 2010 13:52:00 +0000
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maket has reached in crucial zone whre direction may  be 6200 or 4200 any one ....and it has out performed in market in last rally so chances are remote to outperform  again and may be correct also if declines comes...no very good news coming in this sector as off now..
By ashish bhatt, assistant manager, ICICI Bank  | 03 31 2010 19:25:01 +0000
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The euphoria in the top IT scrips follows the resilient performance by these companies in the third quarter and optimistic projections by some of them. Being an export-oriented sector, IT had suffered from the slowdown in the Western economies over the past four-six quarters. Lack of new project spends and cut in existing budgets had led top IT players to report fall in revenues and profits. Given these factors, it seems there is still some steam left in the stocks of top IT firms not withstanding their recent rally. So I don't think top-tier IT stocks are not good buy at current levels
By Archana Singh, Relationship Executive, ICICI Bank  | 03 31 2010 11:55:52 +0000
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