IT scrips pare previous week`s gains

MUMBAI: Domestic IT scrips dipped in early trades, erasing part of the gains posted in the previous week. The coalition forces are facing stiff pockets of resistance closer to Baghdad.

Infosys (-1.43% at Rs 4,387.00), HCL Technologies(-3.05% at Rs 160.50), Satyam(-2.82% at Rs 205.00) were at the receiving end at the bourses today.

A lengthy war will make a bigger hole into the US and the global economy. Domestic IT companies derive majority of their revenues from the US, which itself is going through a bad phase. In a research note circulated to clients recently, investment bank Goldman Sachs pointed out that majority of the key IT spending indicators have pulled back further, while spending expectations have marginally moved up up to +1 per cent for 2003 from their December results of -1 per cent.

Furthermore, the 'normal' long-term IT spending growth rate continues to slide, and now sits at 4.3 per cent, down from December`s five per cent and significantly below the six to seven per cent range that IT majors had been suggesting for most of 2002, added the report.

Source: IRIS