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IT Stocks Outlook for the week – 20 to 24.02.2017

IT Stocks Outlook for the week – 20 to 24.02.2017


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IT Stocks Outlook for the week – 20 to 24.02.2017
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Stocks of information technology companies are likely to sustain the momentum gained over the past week, with a few stocks correcting and a select few range-bound as a number of companies consider buyback of shares. The market sentiment is expected to reflect a shift in the narrative from the uncertainty arising out of US President Donald Trump's protectionist rhetoric to the buyback trend that started when the board of Mphasis Ltd approved the repurchase of shares worth over 11 bln rupees on Jan 31. Last week, American multinational IT solutions company Cognizant, which has operations in India, announced buyback of shares worth $3.4 bln, creating pressure on its Indian peers to do the same. Expectations of a share buyback in Infosys have risen amid comments by former officials at Infosys. Two former Infosys chief financial officers, Mohandas Pai and V. Balakrishnan, have asked the company for better deployment of capital including a share buyback. On Friday, Tata Consultancy Services announced that it will consider a buyback of shares at its board meeting to be held on Monday. Infosys, which dispelled all doubts regarding its corporate governance integrity this week.