Brokerage CLSA has upgraded India's No. 2 software services exporter Infosys to 'outperform' from 'underperform', saying the company is best placed to capitalise on the weak rupee.
"Infosys is our preferred pick to play the INR weakening theme amid an overall cautious stance on tech stocks," said CLSA in a sales note on Tuesday.
The rupee weakened 15.8% in 2011, its biggest annual loss since 2008, as foreign capital took flight on growing concerns about India's current account deficit, its poorly performing stock market and an uncertain global economic outlook.
CLSA said while cautious view on Indian IT stocks stays, a reset of currency assumptions is driving a 2-13% upgrade of fiscal year 2012/13 earnings per share for Tier-1 technology stocks.
