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Stocks of major information technology companies are seen trading in a narrow range next week with a positive bias on account of better-than-expected Apr-Jun results from Infosys and Tata Consultancy Services. The stock hit a lifetime high of 1,810 rupees earlier this week. TCS posted a 5.5% quarter-on-quarter rise in consolidated net profit in Apr-Jun on the back of a 6.1% volume growth, the highest in the past seven quarters and a strong performance of overseas business. Infosys, the other sector heavyweight, posted Apr-Jun net profit at 23.74 bln rupees, slightly above estimates of 23.13 bln rupees. The company has likely gotten on to the path of reclaiming the bellwether tag it lost to TCS a few years back.
Even if the index witnesses some minor correction going forward, the trend will remain positive mostly due to the strong performances of the top two players in the sector. After Infosys and TCS' strong show, Wipro yesterday reported a 2.7% on year growth in net profit for Apr-Jun at 16.23 bln rupees, largely in line with expectations. Net sales rose 5.3% on year to 97.33 bln rupees. We had pegged the company's net profit for the quarter at 16.27 bln rupees. Wipro said it expects revenues from its IT services business to be around $1.6 bln in the quarter ended September, and has based its guidance for the quarter on a foreign exchange rate of 57.24 rupees to a dollar. The company was upbeat about business in the near term. We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US, Chairman Azim Premji said. Investors will now await the results of HCL Technologies, which will be announced coming week.
Stocks of major information technology companies are seen trading in a narrow range next week with a positive bias on account of better-than-expected Apr-Jun results from Infosys and Tata Consultancy Services. The stock hit a lifetime high of 1,810 rupees earlier this week. TCS posted a 5.5% quarter-on-quarter rise in consolidated net profit in Apr-Jun on the back of a 6.1% volume growth, the highest in the past seven quarters and a strong performance of overseas business. Infosys, the other sector heavyweight, posted Apr-Jun net profit at 23.74 bln rupees, slightly above estimates of 23.13 bln rupees. The company has likely gotten on to the path of reclaiming the bellwether tag it lost to TCS a few years back.
Even if the index witnesses some minor correction going forward, the trend will remain positive mostly due to the strong performances of the top two players in the sector. After Infosys and TCS' strong show, Wipro yesterday reported a 2.7% on year growth in net profit for Apr-Jun at 16.23 bln rupees, largely in line with expectations. Net sales rose 5.3% on year to 97.33 bln rupees. We had pegged the company's net profit for the quarter at 16.27 bln rupees. Wipro said it expects revenues from its IT services business to be around $1.6 bln in the quarter ended September, and has based its guidance for the quarter on a foreign exchange rate of 57.24 rupees to a dollar. The company was upbeat about business in the near term. We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US, Chairman Azim Premji said. Investors will now await the results of HCL Technologies, which will be announced coming week.
