I.T stocks Outlook for the week – 30.06.2014 to 04.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
A weak monsoon, and expectations
of a good first quarter will lend buoyancy to major
information technology stocks
next week. A weak monsoon has meant that people are
taking refuge in defensive stocks
like pharma and IT. That is likely to continue this week.
Expect major IT stocks to
outperform the market. We are already seeing that happening.
IT companies witnessed some
buying this week as investors chose to churn portfolios to
defensive bets.
IT stocks that have been
underperforming for the past few weeks on fears of the rupee
strengthening are expected to
finally do better given that the rupee continues to hover
around the 60-mark to a US
dollar.
Currency movement for IT
companies is crucial as they are heavily dependent on
overseas markets for a major
chunk of their revenues. So, any rise in the rupee would hurt
them. After beginning the month
at a high of 59.16, the rupee has weakened and
continues to hover around the
60-mark, ending the day today at 60.09, down 0.09% from
the previous close.
While HCL Technologies and Tata
Consultancy Services are expected to be the stars of
the show, with the latter
expected to reach its previous top level, Infosys is likely to surprise this week.
