I.T Stocks Outlook for the week – 17 to 21.04.2017
I.T Stocks Outlook for the week – 17 to 21.04.2017
Post the disappointing Jan-Mar performance of Infosys Ltd, stocks of information technology companies are seen falling slightly next week. Infosys last week reported its earnings for the March quarter as well as for the entire 2016-17 (Apr-Mar) the first among large cap IT companies to do so. Stocks of the IT major fell nearly 4% yesterday after it announced lower-than- expected dollar sales growth guidance of 6.1-8.1% for the current financial year that started Apr 1, and as sales struggled to grow due to "external distractions" and weak execution. Market and investors were expecting Infosys to guide for a 6-9% growth in dollar sales. Large cap companies' stocks ended down 1-4%. This is seen having a negative bearing on the entire sector as the guidance and the glum demeanor of the management today implied a bleak demand environment for IT companies. Added that expect the rupee to remain a problem for the software exporters. The Indian currency, which ended at 64.41 a dollar today, is likely to rise further in coming weeks. Investors will now watch out for the Jan-Mar performance of Tata Consultancy Services to be detailed on Tuesday. The company is seen reporting a 3.2% sequential fall in consolidated net profit at 65.95 bln rupees and consolidated net sales of 299.1 bln rupees. After Infosys' performance, Investors and traders are watch out for signs of demand recovery and revival in client spend. Also, clarity surrounding US visa issues and improvement in operating margin will be in focus.
Source : Cogencis Information Services Ltd.
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I.T Stocks Outlook for the week – 17 to 21.04.2017
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Source : Cogencis Information Services Ltd.
