Tuesday, January 19, 2010

Wipro's Q3 Resuls: End of IT rally?

Wipro, the IT major is to come up with its Q3 results tomorrow and as per Bloomberg consensus expectations it is expected to post a muted sales growth of around -1% and a fall in net profit growth of around 4%.

Despite this the street is really looking forward to the same with hope and excitement. The main reason behind this excitement is that the other two giants Infosys and TCS have delivered better than expected results and as a result the whole IT pack have performed quite well on exchanges over the last one week.


However, the whole IT lot have gone way beyond their fundamentals are trading at almost their 3-4 year high. Even if Wipro also turns up with a mid blowing results, much of this is already discounted in the prices because when Infosys or TCS delivered good results then Wipro was also making new highs because the street was expecting to follow the same trend. Thus, if it does delivers the same then also the performance, I believe is already there in the price.

I would strongly suggest to start booking profits from the IT lot.

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