IT Stocks Outlook for the week - 19 to 23.May.2014
Most
stocks of information technology companies are seen tracking the wider
market
next week. Clear majority for the Bharatiya Janata Party-led National
Democratic
Alliance in the Lok Sabha elections has boosted investor
confidence.
Yesterday, when there was a selloff towards the close,
IT
stocks still saw some good buying. We expect IT stocks to give around 10%
return
in the 3-4 months, led by the positive sentiment in the market. The CNX
IT
Index yesterday closed at 9111.40, down 2.2%, while the Sensex and the
Nifty
gained 0.90% and 1.12% respectively.
Stocks
of Tata Consultancy Services, India's largest IT services provider,
slipped
1.15% to close at 2,160 rupees. Its closest peer Infosys ended down
2.74%
at 3,182.90 rupees. Investors to "invest gradually" in IT stocks as a
rise
in
the rupee can push IT stocks lower.
