TCS and Infosys results may not surprise on the upside

Infosys would declare its results early morning, which has always been the norm, while TCS is expected to declare its results later in the day.

Analysts are expecting a tepid performance from Infosys Technologies, while TCS has the ability to surprise. The earnings and revenue profitability for both the technology companies would be boosted by a sharp depreciation in the rupee, while in dollar terms the performance is expected to be muted.

Spends from overseas clients have reduced dramatically over the years and fresh concerns on outsourcing to Indian companies from US companies are only going to compound the problems for the IT companies.

Negative publicity surrounding US visa and an election year in the US may add to IT companies misery in the short term.

In the last few quarters, Infosys has faltered while TCS has surprised positively. Wipro and Cognizant have already painted a grim picture and no major surprises from both these companies are expected.

What analysts would keenly await are guidance from Infosys and indications on business prospects from TCS. Any hints of deterioration in business environment and lower than expected guidance could have an impact on the stock prices of these companies and a likely re-rating.

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