Techies dub it knee-jerk reaction

The information technology industry is not unduly worried about the crash of the markets on Monday. It seems they are taking it in their stride.

Ravi Ramu, CFO of MphasiS, said "This is nothing but knee-jerk reaction. The confusion in the will prevail until the portfolios of the new government is decided. I do not think the fundamentals of the market have changed. Moreover, I do not think the people who will be coming into power will be reversing measure what they themselves had initiated thirteen years ago. There will be different factions in the fray and I am certain equilibrium will be attained. West Bengal have been seeing so much of economic progress and I am sure the Left will not be a hurdle in the interest of the country."

S Janakiraman, president & CEO, R&D at Mindtree Consulting, said: "The IT industry in India is based on strong business processes and practices. The industry has gained worldwide acceptance and I do not think the stock market fluctuation will not have any effect on how the business will grow. The confusion in the markets is purely temporary and the dust will settle after the government is formed."

Added an analyst at Singapore-based HAP Securities: "We are watching the market with caution and are skeptical about the whole situation, but at the same time we are not pessimistic about it also. We will continue to invest in the Indian market as among the emerging markets, India still has the best P/E and the fundamentals look strong. There is no reason to be panic".

H V Harish, practice director- south India, Grant Thornton India, said: "This is the good signal of what the new Government should not do. This is having an distinct impact on the retail investors who have voted the new government to power. I would suggest that the retail investor should not get panic. It is worth to wait and watch and in addition to this I guess the slew of public issues will get deferred to an extent."