Goldman Sachs starts Satyam Computer Services Ltd,Tech Mahindra with 8216;buy8217; ratings

Tech Mahindra Ltd shares gain 3.4 percent and Satyam Computer Services Ltd rises 1.8 percent after Goldman Sachs initiates coverage of both companies with 8220;buy8221; ratings.

Goldman says the planned merger between the two companies would create the fifth largest Indian IT offshoring company by revenue,offering 8220;adequate scale to target potential big-ticket deals.8221;

The investment bank adds a merged Tech Mahindra-Satyam company would see good revenue growth and better expense management,while providing higher cash returns to investors.