IT Stocks Outlook for the week – 11 to 15.07.2016
(Infosys, TCS results to set trend later next week)
Stock-specific movement is expected in the stocks of
companies from the information technology sector in the first half of next week. Later in the week,
the Apr-Jun earnings of Infosys and Tata
Consultancy Services will set the trend for the sector.
Infosys will detail its Apr-Jun earnings on
Friday while TCS will detail its earnings on Thursday.
The Indian currency, which ended 67.3625 rupees, is expected
to depreciate against the dollar next
week on upbeat US jobs data. This is seen giving respite to
the companies from the sector which is
major exporters to the US.
The UK's decision to leave European Union is expected to
impact the earnings of information technology companies. This gave rise to several growth
concerns for these companies in Europe as
this region contributes to 25-30% to the topline of major IT
firms. If TCS and Infosys' Apr-Jun
earnings meet market expectations then the sector will see
some positive movement.