- July 17, 2018
- Puneet Kaushal
Foreign portfolio investors are reducing their share in the Indian IT companies. This may be a huge concern for new budding companies or even those who have been planning to make their career in the IT sector. Every sector whether it be in India or elsewhere relies on investment to stand and achieves it goals. With lack if investment from the crucial international market would mean there will be lesser development in the Indian IT sector.
The Indian IT giants Wipro and Infosys will have to bear a lot after this. One of the biggest reasons behind the lack of interest of foreign investors is a tremendous movement by the IT companies towards the digital technology. The exposure of foreign portfolio investors in Infosys has reduced from 37 basis points to 34.82 percent. The foreign investors are taking their hands from Wipro is because of its turnaround. By the end of March 2018, the foreign portfolio holding has been reduced from 9.27% to 8.72%. It has been noticed that Tata Consultancy Services (TCS) which is known for its rapid growth, has also faced the same scenario and its foreign holding is reduced from 29 basis points to 16.59 %.
In the last quarter, it has been noticed that the market share of Wipro was reduced to 7%. On the other hand, the market share of Infosys and TCS was increased by 15% and 29 % respectively. One of the business experts has shown a great concern for Wipro but he is seeing a potential in TCS that it will bounce back.
The CEO of Infosys Mr. Salil Parekh has made a 3 year plan to get the Infosys back on track. He wants stability in the company during first year. For the second year he has focused on the consolidation and for the third year he has made plan for the rapid growth in the country. The idea behind this plan is to get into the minds of the foreign investors. For this, the executives of the company have already started to meet the investors from couple of months.
Now this is again a fantastic way to learn how the companies deal in situations like this one where investors are simply turning away without any show cause notice. LOL! The fact is the IT market of India is ever growing and changing. Every time a new company is formed it comes up with innovative ideas. But these innovative ideas may fire back and turn away the potential investors as Risk is a BIG Risk. Although investors are willing to take up the risks, they do need some surety of return, right?
To learn is to grow. Enthusiast entrepreneurs should understand the working of the market before taking the risk to get indulges and play the risky game. Keeping an eye on what is happening in the market surrounded by the giant companies can help you understand the survival strategies.