I. T Stocks Outlook for the week – 08 to 11.03.2016 Seen trade in a range next week

I. T Stocks Outlook for the week – 08 to 11.03.2016

Stocks of information technology companies are likely to trade in a range next week,
with most sector leaders seen trading with a positive bias due to positive sentiment in
the broader market.

The rupee, which ended at 67.08 a dollar yesterday, was expected to depreciate
further against the dollar due to strong data on non-farm payrolls in the US. This has
improved the view of investors and market participants on the sector, as most IT
companies are exporters.

The broader market is expected to continue its upward trend next week, as in the wake
of the Union Budget for 2016-27 (Apr-Mar), foreign institutional investors had
turned net buyers during the week.

Another factor adding to the positive view on the sector is the announcement of IT
initiatives in the Budget. In the Budget, the government announced several initiatives
for the sector such as digitalisation of land records, digital learning, and e-assessment
of tax. The government has allocated 20.59 bln rupees for these projects.