FIIs maintain cautious view on Indian IT

With earnings season round the corner, Goldman Sachs said it has trimmed the Indian IT sector’s FY09 dollar revenue and EPS estimates by 2% and has cut the price targets by an average of 30%, reports CNBC-TV18.

Meanwhile, Morgan Stanley said that warning signs indicate, that worst is yet to come for the Indian IT services. It said though the dramatic slowdown in business conditions is not fully priced in, yet it maintains cautious view on the sector, the report added.

Meanwhile, a Cowen IT survey sees high probability of freeze in technology spending and funding, reports CNBC-TV18. The freeze could last for many quarters, the survey found. It maintains the offshore sector's positive long-term prospects.

With reference to earnings, the survey revealed that it is difficult to call a bottom on contraction in price to earnings multiples. The technology companies may see earnings misses for the September quarter, the survey said. The companies may see further revenue and earnings per share reductions for next two quarters, it added. It maintains outperform on Infosys for the six-twelve month horizon.

Source: MoneyControl