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Tata Consultancy Services and HCL Technologies, which are near their life-time highs, are expected to rise further in coming weeks. TCS's stock price has increased by 18% since the beginning of the 3QFY13 (Oct-Dec) earnings season and now trades close to its all-time high on the back of optimistic market expectations for a recovery in demand for IT outsourcing in FY14.
However, in the run up to the earnings season, we have adopted a cautious stance citing the absence of any clear indication on demand recovery.
Companies, however, have indicated that the outlook remains mildly positive as they have not seen any cut in client budgets for the year. Further, a weak
rupee against the dollar is expected to lend some support to companies' topline performance going forward.
Stocks of information technology companies are seen rangebound next week, we expecting most stocks to witness some consolidation following their rise over the last one month. The IT stocks will move sideways until companies announce their Jan-Mar and 2012-13 (Apr-Mar) results in a couple of week
Tata Consultancy Services and HCL Technologies, which are near their life-time highs, are expected to rise further in coming weeks. TCS's stock price has increased by 18% since the beginning of the 3QFY13 (Oct-Dec) earnings season and now trades close to its all-time high on the back of optimistic market expectations for a recovery in demand for IT outsourcing in FY14.
However, in the run up to the earnings season, we have adopted a cautious stance citing the absence of any clear indication on demand recovery.
Companies, however, have indicated that the outlook remains mildly positive as they have not seen any cut in client budgets for the year. Further, a weak
rupee against the dollar is expected to lend some support to companies' topline performance going forward.
