I. T Stocks Outlook for the week – 08 to 11.03.2016
( www.rupeedesk.in )
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.