IT Stocks Outlook for the week – 26 to 30.12.2016
IT Stocks Outlook for the week – 26 to 30.12.2016
( www.rupeedesk.in )
The sentiment over information technology companies is expected to be mixed next week. Investors will continue to hold a cautious view on the sector but are likely to invest in large-cap stocks. With IT firms not expected to perform well in the Oct-Dec earnings and US President-elect Donald Trump's likely antiimmigrants and anti-trade policies, the cautious view on the sector is likely to continue over the next three months. We expect IT shares to rise next week after they fell this week due to profit taking. With volatility in domestic markets, investors are expected to turn towards the defensive IT sector. Broader markets are seen trading in a thin band next week due to volatility from the expiry of December futures and options series. However, a stronger rupee is seen weighing over the sentiment in the sector and would limit the gains in the stocks. The rupee is likely to open slightly higher on Monday against the dollar due to profit booking in the US currency. However, recommend avoiding investing in mid-cap technology firms as the returns on these investments are expected to be low.
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IT Stocks Outlook for the week – 26 to 30.12.2016
The sentiment over information technology companies is expected to be mixed next week. Investors will continue to hold a cautious view on the sector but are likely to invest in large-cap stocks. With IT firms not expected to perform well in the Oct-Dec earnings and US President-elect Donald Trump's likely antiimmigrants and anti-trade policies, the cautious view on the sector is likely to continue over the next three months. We expect IT shares to rise next week after they fell this week due to profit taking. With volatility in domestic markets, investors are expected to turn towards the defensive IT sector. Broader markets are seen trading in a thin band next week due to volatility from the expiry of December futures and options series. However, a stronger rupee is seen weighing over the sentiment in the sector and would limit the gains in the stocks. The rupee is likely to open slightly higher on Monday against the dollar due to profit booking in the US currency. However, recommend avoiding investing in mid-cap technology firms as the returns on these investments are expected to be low.
