"We are initiating coverage of Infosys Technologies and HCL Technologies with Market outperformer ratings and we expect their share prices to be ruling at Rs 10,306 and Rs 1,536 respectively over the next twelve months," Anil Tiwari author of the Goldman Sachs IT Report-India said. "We identify Infosys as one of the highest quality names in the industry and also believe in HCL Technologies as a sound business model with niche strengths in engineering solutions," he said. Stock prices of Infosys Technologies and HCL Technologies are currently quoting at around Rs 7,541 and Rs 1,102 respectively in the Mumbai stock market. "We believe two companies will maintain attractive growth and continue to demonstrate crisp execution," the research report said.

Infosys Technologies has one of the strongest business models in the industry and sound business execution methodologies, it said. The company also rated NIIT as a market performer.

Tiwari said India should continue to focus on IT services as its could leverage on over 68,000 IT trained professionals churned out annually.

He admitted the company had undervalued the IT market in India when it had projected seven million internet users last year.