Indian tech stocks surge in US exchanges

Most Indian stocks perform better than major indices.

Bureau Report

NEW YORK: After a lackluster performance in the U.S. stock exchanges last year, Indian technology stocks seem to generate more demand from investors in the first two weeks of 2013. Infosys delivered stronger than expected third quarter earnings number boosting the sentiments for Indian equities among investors in the U.S. However, financials proved to be a dampener in the week ended January 11. Interestingly, financial and auto stocks were in the limelight last year.

What is more interesting to see is that most of the Indian stocks performed better than the major indices such as S&P 500, NASDAQ and the Dow Jones Industrial Averages during the week. While the S&P 500 advanced 0.38 percent, the NASDAQ and the Dow Jones Industrial Averages edged up by 0.77 percent and 0.40 percent, respectively.

If the Infosys stock saw one of the worst performances in the U.S. bourses in 2012, it has turned the tide very well in 2013 rekindling fresh interest in the stock. The first week saw the stock recording 2.09 percent gain and the second week witnessed the stock jumping18.27 percent after a stunning Q3 earnings results and lifting of revenue forecast for fiscal year 2013. Cognizant Technology Solutions, which was the cynosure among the tech stocks last year, continued to generate more interest with the stock recording 4.38 percent gain in the week ended January 11.

Similarly, other tech stocks, Wipro jumped 9.40 percent during the week following a 2.88 percent gain in the previous week. BPO company WNS (Holdings) closed higher by 1.35 percent, while Rediff.com and Sify advanced 12.9 percent and 6.05 percent, respectively, in the same period.

Automobile company Tata Motors followed the technology shares in gaining 5.83 percent during the week on top of a 1.73 percent advance in the preceding week. Dr. Reddy’s Laboratories also ended higher by 1.87 percent in continuing with the previous week gain of 3.33 percent.

However, financial stocks were disappointing. HDFC Bank and ICICI Bank shed 0.92 percent and 1.27 percent, respectively, after recording a gain of 0.80 percent and 3.50 percent respectively in the preceding week. Sterlite Industries too joined these two losers pack with a loss of 2.48 percent following a 3.38 percent gain in the previous week. Investors seemed to have locked profit at higher levels since these stocks recorded significant gains in 2012.

 

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