IT
Stocks Outlook for the week – 09 to 13.05.2016
Mixed; Wipro, Infosys weak, Tech
Mahindra positive
( www.rupeedesk.in )
Weak sentiment in the broader market
and lower-than-expected guidance are seen weighing on the
stocks of information technology
companies, which are seen trading in a range with a negative bias
during the coming week. US-based
Cognizant Technology Solutions Corp expects to report 4-6%
sequential growth in Apr-Jun sales at
$3.34-3.40 bln. Also, it marginally cut the upper end of its
guidance for financial year 2016 to
$14.00 bln from $14.20 bln earlier.
At the lower end, the company expects
to report 2016 sales at $13.65 bln. This translates to approximately 10-13%
onyear growth, slightly above NASSCOM's guidance of 10-12%. The sales guidance
for Cognizant, seen as a trendsetter for the sector, is seen as a positive and
some stocks may rebound towards the end of the week. The Indian currency, which
closed at 66.5450/dollar yesterday, is expected to weaken against the dollar,
giving some respite to the sector, a major exporter to the US.
