While the global economic meltdown may have damped sentiment, for investors it's all in the numbers that have turned in better than most expected.
TCS, India's biggest software services firm turned in better numbers, so does that mean a rosy future ahead?
It’s a stellar performance by the company this quarter and stellar was the response it got from the investors. It was the most bullish response to TCS's earnings ever since its listing in 2004.
The stock peaked at Rs 514.20 and closed over 15 per cent higher and the best numbers came from the US market, where the worst was expected.
N Chandrasheskaran, COO and ED of TCS, said, “Financial services business has grown QoQ. The North America business also grew QoQ indicating some stability. We have also improved gross margins despite the increase in equipment costs."
However, TCS management is extremely non-committal about the future as shock waves exist in pockets like manufacturing and telecom and things can go wrong overnight.
S Ramadorai, CEO & MD, of TCS, said, "Recovery will be as fast as one would see because the spend has decreased."
But analysts love good numbers. They are taking cues from the TCS numbers and are already turning bullish on the sector, anticipating recovery sooner than expected.
Meanwhile, even as both Infosys and TCS have beaten the street with their Q1 results,