IT Stocks
Outlook for the Week – 22 to 26.09.2014
( www.rupeedesk.in )
Stocks of information technology
stocks are seen trading in the positive territory next
week on the back of strong demand
environment as indicated by the recent deal flow in
the sector.
A stable demand environment and
easy supply have kept confidence on maintaining
margins high. We turn
incrementally optimistic on the sector and roll forward our target
prices.
Yesterday, IT stocks rallied on
positive economic data in the US and as global ratings
agency Moody's upgraded the debt
ratings for many Tata group firms, including Tata
Consultancy Services.
Enterprise clients appear a lot
more willing to discuss and deploy emerging technologies,
particularly around social,
mobility, analytics and big data tools and cloud computing -
collectively referred to as SMAC
or 'digital' technologies.
U.B. Pravin Rao, Infosys' chief
operating officer, told investors in Hong Kong earlier this
week that the company is seeing
good traction in manufacturing, telecom and oilfield
services. This is in addition to
financial services.
However, investors will continue
to closely track the rupee as currency movement is
crucial to IT companies.
Yesterday, the Indian currency ended at 60.81 per dollar, a
recovery from the below
61-per-dollar mark hit earlier in the week. The Indian currency
may remain the 60-61 rupees per
dollar range in the near term but sharp deviations could
have an impact on the stocks.
