Updated from 5:28 p.m. EDT
Indian stocks advanced Tuesday led by positive fourth-quarter results out of global IT player Infosys Technologies (INFY - Get Report). Investor sentiment in the Far East shot up off the strong report from Infosys, and market players are now hopeful that the firm's bullish forecast could be signaling a new boost to India's economy.
"More software development work will come to India as price pressures bite into U.S. companies," said Arun Kejriwal, head of research firm KRIS. The Bombay Stock Exchange's benchmark 30-stock Sensex Index climbed 346 points, or 2.2%, to 16,154 points.
Infosys Technologies posted a 32% rise in fourth-quarter revenue and a 20% jump in net income, and it forecasted full-year revenue growth of 19% to 21%. Revenue for the fourth quarter came in at $1.14 billion, vs. $863 million for the prior year and net income was $311 million, or 54 cents a share, vs. $259 million, or 45 cents a share, for the previous year. Infosys sees full-year EPS of $2.31 to $2.35, vs. Wall Street estimates of $2.37 and full-year revenue of $4.97 billion to $5.05 billion, vs. Wall Street estimates of $5.24 billion. Infosys also declared a special dividend of 50 cents per American depositary share. Infosys, whose ADS trade on the Nasdaq, rose 8.5% to $39.67.The positive results out of Infosys helped to spark buying interest in the entire Indian technology complex. Shares of Patni Computer Systems (PTI) rose 5.6% to $12.75; Wipro Limited (WIT) advanced 4% to $11.59; and WNS Limited (WNS) jumped 3.4% to $17.88. Elsewhere in the Indian information technology sector, Cognizant Technology Solutions (CTSH - Get Report) received some positive comments from the brokerage arm of Citigroup, which reaffirmed its buy rating and $57 price target on the stock. Cognizant also announced a new alliance with CTC Laboratory Systems, a subsidiary of Japan's ITOCHU Techno-Solutions, to help Japanese pharmaceutical firms enhance efficiencies with drug discovery and development, according to Antara News. Shares of Cognizant rose 8.7% to $29.32. Another winner in the Indian information technology sector Tuesday was Satyam Computer (SAY). Shares of Sat yam ripped higher Tuesday after the company announced it has formed a strategic alliance with Oracle (ORCL) to build integration packs for Oracle products like Agile PLM and E-Business Suite. Shares of Satyam surged higher by 8.9% to $24.57. Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.