Indian Information Technology Companies upgraded by Lehman

8 Jan 2008

Four Indian Information Technology giants Infosys, Wipro Ltd. ,Tata Consultancy, and Satyam Computer Services Ltd. were raised to ``overweight'' today Lehman. The Bangalore IT giant Infosys was previously rated ``equal weight,'' and the others were rated ``underweight.''

Three of these Indian Informational Technology stocks have been listed in US as ADR ( American Depository Receipts).

Overseas orders are unlikely to reduce as the U.S. economy slows, Harmendra Gandhi, a Mumbai-based analyst at Lehman said. Last year's declines have also made the shares attractive, he said.



Infosys stocks were the worst hit as the rupee posted its biggest annual gain in more than three decades, eroding the value of earnings from the U.S. . Now that the rupee seems to have been stabilised and stock prices have reduced - the INFY stocks have become attractive.

Tata Consultancy Services Ltd. and Infosys Technologies Ltd., India's two largest computer-services providers, were among companies upgraded by Lehman Brothers Inc. due to ``robust demand'' from the U.S. and Europe.

The ``demand and pricing environment continues to remain stable despite macro headwinds,'' Gandhi said in a note to clients today. ``We expect rupee appreciation to slow down, and a mild slowdown for the U.S. economy,'' he said.