MUMBAI: UBS Warburg on Thursday lowered its recommendation on India's two
largest software companies by market capitalization, citing recent problems in
the United States, the main market for these companies. It downgraded Infosys
Technologies , India's second-largest software exporter, to sell from buy,
saying that its revenue growth will be lower than current market expectations.
The brokerage cut its price target on the stock to Rs 1,800 from Rs 4,250.
It also reduced its rating on Wipro Ltd. , India's third largest software
exporter, to sell from hold, and lowered the price target to Rs 800 from Rs
1,570.
The report said that Wipro's downward business momentum until the second
quarter of 2002/03 (April-March) is likely to reduce its growth rate to 14 per
cent from the earlier forecast of 26 per cent. In afternoon trade, shares of
Infosys were down 4.11 per cent at Rs 2,464 while Wipro was off 8.31 per cent at
Rs 1,062. The benchmark 30-issue Bombay index was 0.38 per cent higher at that
time.
(C) Reuters Limited 2001.