IT Stocks Outlook for the week – 29.05.2017 to 02.06.2017
IT Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Stocks of information technology companies are seen trading sideways with a negative bias in the week ahead asinvestors would stay cautious. The Nifty IT index is seen in the range of 10600-10900 points next week. Significantgain in Sensex and Nifty 50 might also reflect on Nifty IT index next week. Strong rupee coupled with persistentworries over US visa norms has been keeping the stocks under pressure. Companies in the sector largely exportsoftware to the US. The rupee, which had appreciated nearly 5% during Jan-Mar, has been volatile over the lastfew weeks.Companies are planning to increase their onsite headcount after coming under pressure due to tightened H-1B
norms by the US, but this would weigh on their margins. Recently Infosys had announced its plan to hire 10,000workers in the US over the next two years. IT Stocks has been bouncing back after ottoming out, but is still underpressure and only stock-specific movement will be seen in the next week.Tech Mahindra, which reported a lower-than-expected result for Jan-Mar yesterday, is seen opening lower on Monday. Tech Mahindra, the last among the Nifty IT constituents to announce its Jan-Mar results, posted a 30.2% on-quarter fall in its consolidated net profit to 5.9 bln rupees. The company's consolidated income from operations stood at 74.95 bln rupees during the quarter, down nearly 1% on quarter.
Source : Cogencis Information Services Ltd.
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IT Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Stocks of information technology companies are seen trading sideways with a negative bias in the week ahead asinvestors would stay cautious. The Nifty IT index is seen in the range of 10600-10900 points next week. Significantgain in Sensex and Nifty 50 might also reflect on Nifty IT index next week. Strong rupee coupled with persistentworries over US visa norms has been keeping the stocks under pressure. Companies in the sector largely exportsoftware to the US. The rupee, which had appreciated nearly 5% during Jan-Mar, has been volatile over the lastfew weeks.Companies are planning to increase their onsite headcount after coming under pressure due to tightened H-1B
norms by the US, but this would weigh on their margins. Recently Infosys had announced its plan to hire 10,000workers in the US over the next two years. IT Stocks has been bouncing back after ottoming out, but is still underpressure and only stock-specific movement will be seen in the next week.Tech Mahindra, which reported a lower-than-expected result for Jan-Mar yesterday, is seen opening lower on Monday. Tech Mahindra, the last among the Nifty IT constituents to announce its Jan-Mar results, posted a 30.2% on-quarter fall in its consolidated net profit to 5.9 bln rupees. The company's consolidated income from operations stood at 74.95 bln rupees during the quarter, down nearly 1% on quarter.
Source : Cogencis Information Services Ltd.