IT stocks in demand

Nine IT stocks rose by 0.09% to 1.26% at 9:25 IST on BSE after US-based Cognizant Technology Solutions Corp reported better-than-expected second quarter results and raised its forecast for the year.

HCL Technologies (up 1.26%), TCS (up 0.79%), MphasiS (up 0.65%), Tech Mahindra (up 0.53%), Hexaware Technologies (up 0.42%), CMC (up 0.31%), Infosys (up 0.30%), Oracle Financial Services Software (up 0.25%) and Wipro (up 0.09%), edged higher.

The S&P BSE IT index was up 0.70% at 7,600.90. It outperformed the S&P BSE Sensex, which was down 0.21% at 18,694.23.

The S&P BSE IT index had outperformed the market over the past one month till 6 August 2013, rising 21.23% compared with the Sensex's 3.91% fall. The index had also outperformed the market in past one quarter, rising 25.98% as against Sensex's 4.78% fall.

New Jersey-based Cognizant Technology Solutions Corp reported better-than-expected second quarter results and raised its forecast for the year as clients in North America invest more in IT services and software, encouraged by a steady economic recovery.

Cognizant on Tuesday, 6 August 2013, said it had earned a profit of $300 million for the June quarter, beating street expectations and surpassing its own guidance. The profit is up 5.7% sequentially and 19.2% compared to the year-ago quarter.

The revenue stood at $2.16 billion, up 7% quarter on quarter and 20.4% compared to the same quarter a year ago. Cognizant, which has most of its employees in India, said it expects 2013 earnings of at least $3.96 per share on revenue growth of at least 19% to $8.74 billion. It had previously forecast earnings of at least $3.95 per share on revenue growth of at least 17% to $8.60 billion.

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