Technology stocks shine; Cognizant, Sify in the limelight.
NEW YORK: Indian companies’ stocks, which are listed in the U.S. stock exchanges, have all advanced between 0.8 percent and 11.98 percent during the week ended January 4. While Cognizant Technology Solutions continued to be the cynosure of investors in terms of the U.S. dollar, Sify Technologies stock is the top performer in terms of percentage.
Technology stocks attracted more interests than the financials and automobiles. This follows after the U.S. policy makers hammered out a solution to the fiscal cliff issue at the 13th hour. The interest in tech stocks grew on the hope of improved December quarter results in the coming weeks. Aside from this, hopes of improved economic conditions and sentiments are the drivers for renewed interest in tech stocks.
Cognizant Technology Solutions rose 3.97 percent in the week ended January 4, while Infosys and Wipro advanced 2.09 percent and 2.88 percent respectively. WNS Holdings, a BPO company, surged 7.36 percent. Yet, it was Sify and Rediff.com that gained most by 11.98 percent and 8.01 percent in the technology space.
However, financial and automobile stocks, which performed very well in the U.S. stock exchanges in 2012, are struggling to maintain the momentum. For instance, HDFC Bank rose 0.81 percent; ICICI Bank grew 3.5 percent.
Similarly, Tata Motors grew 1.73 percent in the automobile sector, while Dr. Reddy’s Laboratories advanced 3.33 percent in the health care space. Metal stock Sterling Industries also gained 3.38 percent.
Despite all the Indian stocks advancing in the U.S. bourses during the week, the major indices growth is significant, indicating the underperformance of blue chip stocks such as Infosys, Cognizant, HDFC Bank, ICICI Bank, and Tata Motors. While S&P 500 gained 4.64 percent, the NASDAQ advanced 4.77 percent and the Dow Jones Industrial Averages profited by 3.84 percent.