Eldridge Financial Review: Clarification on GAAR will drive market direction in the short term: ING Investment Managemen
posted by utterbackpac 18 days ago under eldridge financial news, tom eldridge financial, eldridge financial blog, eldridge financial review-clarification on gaar w
One good thing about the expectations vis-a-vis the IT results is that the expectations are poor. Managements like TCS as well as Infosys have already guided for poor volume growth. We are going into the IT results season with poor expectations, which is actually positive. From an overall perspective, the budgets for FY13 or CY12 in the case of global companies are at best flat. These boards are well for a 13% to 16% earnings growth for next year. Valuations in this space, especially in the large cap are in the range of 15 to 17 times. Valuations are not expensive. If you have issues in terms of global flows because of GAAR provisions, rupee should depreciate further. If there is a selloff, that should again be positive. Overall, we are positive on the space and overweight on the sector. » Eldridge Financial Review: Clarification on GAAR will drive market direction in the short term: ING Investment Managemen
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