IT or ITES Service Sector More Responsible for Recession.

[dimpy.handa]

During Global Recession, the Indian IT/ITES Sector was badly hit due to its dependence on U.S. market. The sales for the Dec-08 quarter declined by 7.13% & 5.7% for the top five IT & ITES companies respectively. On the other hand, the average stock price decline for the same period was 35.16% & 48.67% for IT & ITES companies respectively.

So, among all the parameters, the impact on stock prices stood out to be the worst affected among all. Hence, this paper attempts to find out the parameters which are responsible for defining the variation of stock prices.

 

[shivibhanot]

Global Recession, a period of global economic slowdown was triggered by the reckless and unsustainable lending practices resulting from the deregulation and securitization of real estate mortgages in the United States. The Indian IT/ITES Sector which had majority of its clients in the US market was hardly hit by this downturn.
There was an impact on the sales, stock prices, employee recruitment rate and other financial parameters of these companies. However, due to hue and cry in the stock market, the impact on stock prices stood out to be the worst affected among all.


Read more: http://bizcovering.com/investing/gl...s-sector-financial-perspective/#ixzz1RXQO0a9j