IT Stocks Outlook for the week – 15 to 19.05.2017
IT Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
The positive momentum in information technology companies is expected to continue next week owing to low valuations. The stocks in the IT sector were beaten down over the past few weeks following growth concerns and rising visa issues. Technical analysts expect the negativity in the stocks to bottom out and to rise in the upcoming sessions. However, persisting strength of the rupee against the dollar is seen weighing on the sector. After sustaining higher lows this week, the Nifty IT index is expected to stay at even higher lows next week as well. Meanwhile, US-based IT major Cognizant Technology Solutions Corp reportedly handed pink slips to nearly 10,000 employees this week, citing sub-par performance. Concerns on immigration to the US, automation, and a push to hire locals in the workforce have prompted IT companies to rationalise their Indian workforce. This has led laid off workers to seek legal and regulatory recourse. As the wage arbitrage enjoyed by Indian IT companies disappears, more Indian IT companies are likely to fire employees en masse, which may lift their stocks further. Next week, Stocks of HCL Technologies are seen gaining following robust earnings reported by the company on Thursday. For Jan-Mar, the company reported a consolidated net profit of 24.7 bln rupees, up from 20.6 bln rupees a quarter ago.
Source : Cogencis Information Services Ltd.
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IT Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
The positive momentum in information technology companies is expected to continue next week owing to low valuations. The stocks in the IT sector were beaten down over the past few weeks following growth concerns and rising visa issues. Technical analysts expect the negativity in the stocks to bottom out and to rise in the upcoming sessions. However, persisting strength of the rupee against the dollar is seen weighing on the sector. After sustaining higher lows this week, the Nifty IT index is expected to stay at even higher lows next week as well. Meanwhile, US-based IT major Cognizant Technology Solutions Corp reportedly handed pink slips to nearly 10,000 employees this week, citing sub-par performance. Concerns on immigration to the US, automation, and a push to hire locals in the workforce have prompted IT companies to rationalise their Indian workforce. This has led laid off workers to seek legal and regulatory recourse. As the wage arbitrage enjoyed by Indian IT companies disappears, more Indian IT companies are likely to fire employees en masse, which may lift their stocks further. Next week, Stocks of HCL Technologies are seen gaining following robust earnings reported by the company on Thursday. For Jan-Mar, the company reported a consolidated net profit of 24.7 bln rupees, up from 20.6 bln rupees a quarter ago.
Source : Cogencis Information Services Ltd.