Infosys stock doesn't make you a millionaire anymore

NEW DELHI: Once considered the hot stock of the Dalal Street, technology stocks now seem to be losing their charm. In the last 12 months, while the BSE Sensex zoomed 39.8%, all top IT stocks be it Infosys, TCS, Wipro or Patni declined by double-digit percentages. Call it the rising rupee, impending taxes or analyst outlook, the IT sector has to work wonders to bring back its magic touch. Infosys Technologies, the bellwether of Indian IT stocks, which has many a times swung the declining Sensex to higher levels by it’s scrip alone, has been trading at a decline from its highs since past one year. The price of the stock has waned by a whopping 26.8% on the BSE. The stock was trading at Rs 2,193.75 on December 1, 2006. It has slid to Rs 1,604.05 as on December 1, 2007. As of end September 30, 2007, the Infosys’ market capitalisation stood at Rs 108,116 crore. It dipped to about Rs 89,000 crore in last week of November before bouncing back to Rs 1,22,115 crore on December 4, 2007. Infosys declined to comment on stock movement but said it has managed to maintain its margins. India’s largest IT company, TCS, which has revenues of over $4.3 billion and over 1,00,000 employees is also seeing a decline on the BSE. TCS scrip has declined 14.56% on the BSE to Rs 1,013.95 from Rs 1,186.80. TCS’ market capitalisation has declined by a whopping Rs 13,098 crore from December 1, 2006, till Tuesday. All top four IT companies-TCS , Satyam , Infosys and Wipro-are included in the Sensex which comprises 30 largest and most traded stocks on the BSE. But the Sensex, in contrast , has been on a stellar show since last year. The Sensex has zoomed from 13,844 level since December 1, 2006, to 19,363.19 as on December 1, 2007, a gain of 39.8%. The Wipro stock has declined 23.4% eroding almost Rs 140 from its stock price as on December 1, 2007. Wipro has shed Rs 14,415 crore in market capitalisation since last year. Satyam is the only stock which shows a single-digit decline at 5.76%. But the Hyderabad-based company has also lost Rs 662 crore in a market capitalisation since December 1, 2006. As compared, Patni Computer Systems fell by 19.27%. Patni stock was buoyed in the medium term after talks of a stake sale to a private equity firm but the stock fell as the reported stake sale was called off.