I.T stocks Outlook for the week – 07 to 11.09.2015
( www.rupeedesk.in )
Information
technology stocks are seen range bound, but are expected to outperform the
broader
market
next week as investors prefer to hold on to defensive stocks amid a slump in
the market.
Broader
market sentiments are weak as foreign institutional investors have exited some
investments due to concerns about global economic slowdown.
Keeping
in line with the broad market weakness, stock price of IT stocks have undergone
correction. But the continuing depreciation of the rupee is seen favourably
impacting these companies' margins.
The
rupee, which ended at 66.46 per dollar, is expected to further weaken against
the dollar in the following week in light of upbeat US employment data. Tata
Consultancy Services Ltd has raised salaries for entry-level employees by up to
10%. This has shown a positive sign for the company and the sector.
Recently,
HCL Technologies Ltd and Wipro Ltd have tied up with Manchester United and
Chelsea Football Clubs respectively to provide various digital initiatives.
These deals by the two large-cap IT companies have improved the sentiments of
market participants.
Recently,
MindTree completed the acquisition of UK-based Bluefin Solutions and US based-
Relational
Solutions. These acquisitions are expected to aid the company's margins.
Additionally,
Cyient
has completed the acquisition of Global Services Engineering Asia, a division
of aerospace manufacturer Pratt & Whitney Services Pte Ltd.
