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Stocks of information technology companies are likely to outperform an overall lacklustre market next week, with the broader market likely to see choppiness over growing fears of the US Federal Reserve scaling back its stimulus programme. IT stocks are likely to see more buyers next week, especially if the fall in indices this week carries forward. Stocks of IT companies are considered relatively safe, as the companies are largely immune to domestic demand issues. Moreover, the US, which accounts for about 60% of the revenue of tier-I information technology companies such as Infosys and TCS, has been doing better than expected in recent months. A report released by Commerce Department showing slightly stronger than expected (India) retail sales growth in, November added to the market worries. The migration to IT stocks was visible this week, with frontline IT shares rising 1-6%, while both Nifty and Sensex were down about 1.4%. The focus this week was on Infosys, which unveiled a new software platform aimed at retail companies. However, stocks of relatively smaller information technology companies such as HCL Technologies and
Wipro outperformed those of bigger rivals like Tata Consultancy Services and Infosys.
Stocks of information technology companies are likely to outperform an overall lacklustre market next week, with the broader market likely to see choppiness over growing fears of the US Federal Reserve scaling back its stimulus programme. IT stocks are likely to see more buyers next week, especially if the fall in indices this week carries forward. Stocks of IT companies are considered relatively safe, as the companies are largely immune to domestic demand issues. Moreover, the US, which accounts for about 60% of the revenue of tier-I information technology companies such as Infosys and TCS, has been doing better than expected in recent months. A report released by Commerce Department showing slightly stronger than expected (India) retail sales growth in, November added to the market worries. The migration to IT stocks was visible this week, with frontline IT shares rising 1-6%, while both Nifty and Sensex were down about 1.4%. The focus this week was on Infosys, which unveiled a new software platform aimed at retail companies. However, stocks of relatively smaller information technology companies such as HCL Technologies and
Wipro outperformed those of bigger rivals like Tata Consultancy Services and Infosys.
