IT Stocks Outlook for the week – 27 to 31.03.2017
IT Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of information technology companies are likely to trade in a range, largely with a negative bias, next week, as markets lack definite cues. Only stock-specific movement is expected over the next week as there are no specific market signals. A strong rupee against the US dollar is also seen weighing on the stocks. Though the rupee is seen a tad weak against the US dollar in the coming week, it is not seen helping the IT sector much because of sharp appreciation over the last few sessions. A strong rupee is negative for companies that get a large portion of revenue from their US business. Persistent worries over US visas may also cap gains during the sessions ahead. A bill seeking to prevent US companies from outsourcing jobs overseas through H-1B programme has been reintroduced today in the US House of Representatives. This bill aims to stop employers, who get temporary visas through H-1B programme and use them to train employees in the US and then shift those jobs to another country. The introduction of another bill would mount pressure on the Indian software exporters, the largest consumers of US work visas, as probability of tighter visa norms and higher visa fees is expected to increase. Moreover, a fall in revenue of US-based Accenture Plc in Dec-Feb also indicates a weak demand environment. The company reported a 2.3% sequential fall in consolidated net revenue to $8.3 bln in Dec-Feb, because sales from its key verticals, including banking and financial services, fell 2-4% on quarter.
Source : Cogencis Information Services Ltd
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IT Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of information technology companies are likely to trade in a range, largely with a negative bias, next week, as markets lack definite cues. Only stock-specific movement is expected over the next week as there are no specific market signals. A strong rupee against the US dollar is also seen weighing on the stocks. Though the rupee is seen a tad weak against the US dollar in the coming week, it is not seen helping the IT sector much because of sharp appreciation over the last few sessions. A strong rupee is negative for companies that get a large portion of revenue from their US business. Persistent worries over US visas may also cap gains during the sessions ahead. A bill seeking to prevent US companies from outsourcing jobs overseas through H-1B programme has been reintroduced today in the US House of Representatives. This bill aims to stop employers, who get temporary visas through H-1B programme and use them to train employees in the US and then shift those jobs to another country. The introduction of another bill would mount pressure on the Indian software exporters, the largest consumers of US work visas, as probability of tighter visa norms and higher visa fees is expected to increase. Moreover, a fall in revenue of US-based Accenture Plc in Dec-Feb also indicates a weak demand environment. The company reported a 2.3% sequential fall in consolidated net revenue to $8.3 bln in Dec-Feb, because sales from its key verticals, including banking and financial services, fell 2-4% on quarter.
Source : Cogencis Information Services Ltd