TCS, Infosys gain after Cognizant earnings

Reuters Market Eye - India's software services exporters gain, with Infosys Ltd up 0.4 percent, Tata Consultancy Services Ltd up 3 percent, and Wipro Ltd up 1.2 percent.

Gains come a day after Cognizant Technology Solutions Corp's quarterly profit modestly beat estimates, helped by a rise in demand from Europe.

The results confirm that revenues of Indian software services exporters continue to outperform Cognizant's, making the U.S.-listed IT company still not too much of a competitive threat, analysts say.

Barclays says Cognizant's annual guidance "poses no risk" to its forecasts for Indian IT companies and indicates company's revenue growth would continue to lag Infosys for another quarter.

 

(Reporting by Manoj Dharra)