Romesh Tiwari of CapitalAim feels IT majors like Infosys and TCS are robust and can provide comparatively-secured returns while returns on midcap IT will be more volatile
Sanchit Vir Gogia, founder, Greyhound Research, a technology advisory firm, said: "This situation is not great. There is a sense of scare."
The senior executive says the business environment is not as seasonal as before while the second half may better the first.
Slowing global economic growth has been hurting Indian IT companies’ earnings. But Infosys is better placed than TCS to win large deals which will provide better growth visibility ahead
Since the earnings season has begun, volatility will remain high across the board, traders should focus more on risk management aspect and avoid naked leveraged trades.
The Tata Group cash-cow delivered a tepid 5.8 percent spike in revenue growth at Rs 38,977 crore for the quarter, blaming the sluggishness in its mainstay of banking and also the retail sector for its woes.
As digital demand grows, it is investing in training its employees in emerging technologies.
Net Sales are expected to increase by 3.6 percent Q-o-Q (up 7.3 percent Y-o-Y) to Rs. 39,536.6 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 2.7 percent Q-o-Q (up 6.4 percent Y-o-Y) to Rs. 39,206.7 crore, according to Motilal Oswal.
The Nifty Services Sector index has formed a head & shoulders pattern at the top of the rally, but it is still 5 percent away from the neckline support.
The market will remain shut on October 8 for Dussehra
IT sector is the second largest employment generator in India employing close to 12.30 lakh following the banking sector that employs 12.60 lakh people.
It is targeted at custodians, broker dealers, asset managers and investment and private banks, TCS said in a statement.
IT service sector is known to be very competitive in general. Known for its large campus intakes, majority of employees in this sector hold bachelor's degrees. Multnational Corporations become attractive to junior employees if they see a possibility of small hikes and an opportunity to work overseas.
The m-cap of Tata Consultancy Services (TCS) was at Rs 7,75,092.58 crore, which is Rs 20,087.04 crore less than that of RIL's.
The IT major said over 1,300 employees from GMTC-1 will be transferred to TCS including teams focused on propulsion systems, vehicle engineering, controls development, testing, creative design and special projects.
In its August 20 order, the jury had rejected the claims of the three employees based on evidence presented in court by TCS
We expect growth momentum to continue in FY20, given deal wins of USD 6.2 billion in Q4-FY19, says Anand Rathi.
Pal, whose appointment is effective August 21, will head the new entity which has been formed to incubate new digital businesses.
The Tata Sons chief’s strategy appears to be one of consolidation, keeping in mind the philosophy of the group, rather than a slash and burn approach that may deliver quick results.
RIL shares have gained ground since the announcement of a host of investor-friendly proposals at its annual general meeting held early last week.
They are trying to stem the problem with better salary hikes and promotions along with overall employee value proposition.
We expect growth momentum to continue in FY20, given deal wins of USD 6.2 billion in Q4-FY19.