IT Stocks Outlook for the week – 25 to 29.05.2015

IT Stocks Outlook for the week – 25 to 29.05.2015
 Large cap companies expected to trade higher
Stocks of information technology companies may trade with a positive bias next week with the large cap companies seen faring particularly well in what is likely to be a volatile broad market ahead of May futures expiry. However, the mid cap companies may continue to under-perform in the next week. The Indian stock markets witnessed another volatile week led by a multitude of companies reporting their financial results for the quarter ended Mar 31.

The local currency depreciating intra-week aided the information technology sector which saw most of the IT companies in Nifty rise by 4% on an average. The rupee's depreciation is otherwise good for these companies and market participants engaged in value buying as the stocks were trading at attractive rates. Focus will be more on companies reporting earnings.

Most IT companies have detailed their financial results for the Jan-Mar quarter. Tech Mahindra is the only one remaining and it is scheduled to detail its results on Tuesday.
Tech Mahindra is expected to report flat sequential revenue growth for the Jan-Mar quarter,
excluding the impact of acquisitions and foreign exchange movement, and margins are seen
declining by around 2.5 percentage points due to wage hikes, acquisitions, and cross currency