Equity Alert: Tech shares recoup losses; Infosys, TCS rise over 2%

[K.Karthik Raja]

Equity Alert: Tech shares recoup losses; Infosys, TCS rise over 2%
MUMBAI--1:04PM--Technology shares recouped losses, helped by the
recent
depreciation of the rupee against the dollar, dealers said.
Tata Consultancy Services and Infosys Technologies were up over 2%
each,
while Wipro as up 0.3%. HCL Technologies rose 1%.
"TCS saw some short covering while there is a build up of fresh
long
positions in Infosys," said a dealer.
He pegged resistance for TCS at 965 rupees, and that for Infosys
at 1,880
rupees.
"Tech shares have been gaining from the rupee-dollar movement, and
given
rupee's depreciation, in the first quarter FY09, companies are likely
to meet
and beat their guidance, which was given at the rate of around 40.02
rupes/$1.
For Q1, the rate would easily work out to 41.20-41.50 rupees/$1," said
an
analyst.
However, he added, "Even six months from now, I believe the demand
slowdown
in the US is not likely to fade away so soon, and therefore a risk to
large-cap
companies like Infosys and TCS remains."