IT shares gain, Goldman upgrades TCS

Shares in software exporters gained today as brokers cite the sector is facing rising demand from the United States and Europe.

Goldman Sachs upgraded Tata Consultancy Services Ltd to "buy" from "neutral" and raised the Indian IT sector's dollar revenue growth to 15 percent by fiscal 2015 from 12 percent, citing stronger demand in the United States/European Union, rise in outsourcing deals and a better deal pipeline.

Goldman Sachs also added Tech Mahindra Ltd to its conviction buy list.

TCS gained 2.5 percent and Tech Mahindra rose 2.9 percent.

Overall, 2013 IT budget growth expectations improved by 110 basis points to 4.3 percent as per Morgan Stanley's CIO survey for October.

The investment bank says the rebound in European budget growth is particularly robust and coincides with improving macro indicators.

Copyright @ Thomson Reuters 2013