Information technology firms in India are reporting the highest ever price-earning multiples for any sector in the history of corporate India. IT stocks like Wipro, Infosys, NIIT and Tata Elxsi are for the first time displaying price to earnings ratios on par with global technology majors in the US. P/Es of these firms currently range between 123 for Wipro and 83 for NIIT. Analysts justify the attraction of such high multiples to their strong earning potential in the years to come, as the IT sector is expected to grow by 50% to 70% per annum for at least the next five years. Meanwhile, Infosys has chosen Nasdaq and not the New York Stock Exchange to list its forthcoming issue in the US, said N R Narayanmurthy, chairman and chief executive officer, Infosys Technologies. Another Indian firm, HCL Technologies Ltd, part of India’s leading IT firms, the HCL Group, is also planning a Nasdaq listing.
