TCS Ltd rises on Q1 earnings; hits lifetime high in early trade on BSE: 

Allied Digital Services Ltd gets 70% of its revenue from the domestic market. Hence buy the scrip in bulk around Rs.49, with a SL of Rs.45. With the US economy improving the software counters are set to do well. Another scrip which I like is Helios and Matheson Information Technology Ltd  which is now trading around Rs.31.  Now is the time to lap up all the MID, SMALL AND MICRO CAP counters in bulk and exit in September--October period making superb returns. The Nifty is showing huge resilience and hence my earlier target of 5900-6300 in the Nifty still holds. 
The Reliance Industries Ltd is still going great with the GRM looking good; now trading at Rs.870.

Risk taking investors/traders can take a bet on the interest rate and buy the rate sensitives as RBI might not go ahead with the interest rate hike because there are some indications of the slowing down of the demand, because if even after the rise in fuel prices, the inflation does not rise, then it speaks volumes about the future outlook of inflation: Among the real estate counters you can buy HDIL at around Rs.162 and Unitech Ltd at Rs.34...

Dr.Ben Bernanke told lawmakers yesterday, that the Fed expected the US economy to improve. He said the central bank had no immediate plans to step in with more economic stimulus, which is very positive from the inflation point of view; as you know large scale dumping of the USD were fueling in inflation in many economies like India and China. 

Shares of the country's largest software company TCS spurted by 20 per cent to touch an all-time high in early trade on the BSE today, boosted by smart growth in net profit for the first quarter of FY2011-12, which analysts termed as above market expectations. 

At 11:46 AM, shares of TCS were trading at 1154.00, up 2.55% 

The stock, which opened the day on a strong note, surged by 20 per cent to touch a lifetime high of Rs 1,350.30 in early trade on the BSE. However, shortly thereafter, the scrip pared some of the gains and was trading at Rs 1,152, up 2.38 per cent from its previous close. 

On the NSE, the scrip surged by 4.82 per cent to touch an early high of Rs 1,177.90. 

The scrip was the top gainer among the 30 stocks in the Sensex pack.. 

After the market had closed on Thursday, TCS posted a 28 per cent rise in quarterly net profit to Rs 23.8 billion ($535 million) and revenue rose 31 per cent to Rs 107.97 billion based on international financial reporting standards. 

For India's $60-billion outsourcing sector looking for positive cues amid growing economic uncertainties in the top markets of US and Europe, TCS' 31.4% growth in first quarter revenues to Rs 10,797 crore provided some relief. As top customers General Electric and Citigroup seek to cut costs and become more profitable, they are increasing the outsourcing of non-core back office and software development projects to vendors like TCS. 

India's number two software firm Infosys, which announced its April-to-June quarter earnings earlier this week, also saw its first quarter profit fall by 5.3% compared to the fourth quarter of last year on increased salary costs. While Infosys raised concerns on demand ahead for outsourcing because of economic uncertainties in the top markets of US and Europe, TCS denied any such trend. 

"While we are watchful, as of now we continue to see sustained demand for our services," TCS CEO and MD N Chandrasekaran said on Thursday. Shares in TCS closed down by 2.2% at Rs 1,123.70 on the BSE on Thursday ahead of the company's earnings. 

Investors and experts tracking the sector were anxious about the prospects ahead after Infosys provided a muted forecast and raised concerns about macro economic worries affecting demand for outsourcing business. 

"While TCS, too, saw it profits get affected because of wage hikes, the management commentary hinted at strong demand, which is quite opposite of what Infosys projected," said an analyst at Mumbai-based office of a multinational brokerage firm. 

"The company during second quarter is expected to hire 17,000 to 20,000 people," CEO MD N Chandresekaran said here. 

The company plans to hire about 60,000 people in the ongoing financial year (2011-12). During the quarter ended June 30, the company made a gross addition of 11,988 employees, while 8,412 left the organisation. The net remaining with the organisation stood at 3,576 headcounts, taking total headcount to 2,02,190. 

Last month, consulting firm Accenture reported better-than-expected third-quarter profit growth of 28% and raised its outlook for the year, citing strong demand for services. "TCS results were above our estimates. The 7.4% volume growth was the highlight. 

More importantly, the growth was broadbased, which lends a degree of stability to this growth, we believe. The management is confident about client spending while being cautious on the macro scene," said Dipen Shah of Kotak Securities. 

TCS CEO Chandrasekaran did not deny the economic uncertainty, but said it has not affected demand for outsourcing yet. 

"This uncertainty will continue. Unemployment is an issue in some countries; there is unrest in the Middle East; there was a natural calamity in Japan. These things put pressure on the environment," he said.