IT Stocks Outlook for the week – 25 to 29.05.2015
Large
cap companies expected to trade higher
( www.rupeedesk.in )
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
impact.
