I.T Stocks Outlook for the week – 28.07.2014 to 01.08.2014
( www.rupeedesk.in )
( www.rupeedesk.in )
Trading in stocks of information technology stocks is likely
to be muted to negative next
week as most mid-caps underperformed this week. For
instance, Chennai-based Polaris
Financial Technology reported a 15.6% sequential drop in its
consolidated Apr-Jun net
profit at 383.23 mln rupees due to lower revenue and higher
taxes. Mid-sized IT services
companies HCL Technologies and MphasiS are scheduled to
announce their Apr-Jun
results next week and investors in general will be expecting
them to follow the trend.
Wipro on Thursday declared a 5.5% sequential fall in its
Apr-Jun consolidated net profit
to 21.03 bln rupees as the company's top-line declined
during the quarter while its wage
burden rose. Stocks of Wipro tumbled after the results, to
close yesterday at 551.05
rupees, down 4.5%, on the National Stock Exchange.
Next week, the market will take cues from the management
commentary of MphasiS and
HCL Technologies which will detail their earnings on July 30
and July 31 respectively.
Investors will continue to closely track the rupee as
currency movement is crucial for IT
companies. IT companies bill most of their revenues in
dollars. Typically, for every 1%
change in the USD/INR rate, Indian IT companies' margins are
impacted by 25-35 basis points.
