I.T Stocks
Outlook for the week – 19 to 23.01.2015
( www.rupeedesk.in )
Stocks of information technology
companies are likely to trade on a strong footing, buoyed by
broader optimism in the market
and a good set of quarterly numbers from Infosys and Wipro
Ltd.
On yesterday, Wipro reported a
5.5% sequential jump in its revenue for Oct-Dec, the highest of
the three big IT companies. The
performance was not just ahead of Street expectations, but also
that of the company's own recent
history. Wipro and Infosys had been reporting muted growth
for much of the last three years,
and have taken various steps over the past one year to bring
themselves back to the growth
path.
Both the companies posting
better-than-expected results is likely to lift the mood in IT counters
next week, largely negating the
effect of poor results reported by Tata Consultancy Services Ltd.
The momentum on IT stocks remained
mixed yesterday. The weak results from TCS kept IT
stocks under pressure. The recent
stability in the rupee, which has been on a losing streak and
talk of global weakness also
weighed on IT stocks.
However, the negative sentiment
around TCS' results will be more than offset by the good
numbers reported by Wipro, which
has not given good news to its investors in the last several
quarters. The coming week will
also see results announcement by KPIT Technologies Ltd
(Wednesday) and Persistent
Systems Ltd.
While Persistent has been among
the better performing mid-cap IT stocks. Two key IT stocks,
HCL Technologies and Tech
Mahindra, have been running up ahead of their results, but they are scheduled to report their numbers
only by the end of this month.
