www.rupeedesk.in
Stocks of major information technology companies are seen up in the next five trading sessions aided by a weak rupee, which is expected to augur well for the companies in the near term. So far, the rupee has depreciated 5.39% against the dollar since May. Yesterday, the rupee fell to a fresh over 11-month low, ahead of the May US non-farm payrolls data due for release later yesterday.
The Indian currency, which ended at 57.06 to a dollar yesterday, has traded in the range of 53.00-56.00 per dollar since March. Investors will keep an eye on Infosys, which on Saturday announced the re-appointment of its founder N.R. Narayana Murthy as its executive chairman, in a bid to revive its sagging fortunes. Murthy's re-appointment was cheered by the industry.
While Murthy insisted that his role will be only to "add value" to the company and the current Managing Director and Chief Executive Officer, S.D. Shibulal, industry experts saw this as a move to shake Infosys out of its slumber and push it towards future growth. However, the opinion that while the news will be positive for the company's stocks in the coming weeks, only larger deal signing and better execution will help the company return to growth.
For the last two years, Infosys has been subjected to harsh criticism due to its constant underperformances. We have expressed severe disappointment not only on its inability to meet its own annual guidance but also the poor outlooks it has been providing. Further, We are also closely watch Wipro, whose management reiterated that the company's revenue for the quarter ending June, and earnings before interest and tax margins for 2013-14 (Apr-Mar) are likely to remain in a narrow range.
Stocks of major information technology companies are seen up in the next five trading sessions aided by a weak rupee, which is expected to augur well for the companies in the near term. So far, the rupee has depreciated 5.39% against the dollar since May. Yesterday, the rupee fell to a fresh over 11-month low, ahead of the May US non-farm payrolls data due for release later yesterday.
The Indian currency, which ended at 57.06 to a dollar yesterday, has traded in the range of 53.00-56.00 per dollar since March. Investors will keep an eye on Infosys, which on Saturday announced the re-appointment of its founder N.R. Narayana Murthy as its executive chairman, in a bid to revive its sagging fortunes. Murthy's re-appointment was cheered by the industry.
While Murthy insisted that his role will be only to "add value" to the company and the current Managing Director and Chief Executive Officer, S.D. Shibulal, industry experts saw this as a move to shake Infosys out of its slumber and push it towards future growth. However, the opinion that while the news will be positive for the company's stocks in the coming weeks, only larger deal signing and better execution will help the company return to growth.
For the last two years, Infosys has been subjected to harsh criticism due to its constant underperformances. We have expressed severe disappointment not only on its inability to meet its own annual guidance but also the poor outlooks it has been providing. Further, We are also closely watch Wipro, whose management reiterated that the company's revenue for the quarter ending June, and earnings before interest and tax margins for 2013-14 (Apr-Mar) are likely to remain in a narrow range.
