I.T Stocks Outlook for the week- 30.03.2015 to 01.04.2015
( www.rupeedesk.in )
Stocks
of information technology companies are expected to trade in line with the
broader
market
ahead of Jan-Mar results. IT stocks fell by 3-6% this week, compared to a fall
of around 3.8% in broader indices, on anticipation that fourth-quarter results
are going to be below estimates.
Persistent
Systems, considered one of the best mid-cap IT companies in India, announced
that its fourth-quarter revenue growth has been impacted by ramp down in one of
its large clients in the product engineering segment.
This
is likely to result in a muted sequential revenue growth, against expectation
of a high singledigit growth. Persistent's is only the latest of a slew of
negative earnings outlook revisions, on the lines of KPIT Technologies and Tata
Consultancy Services Ltd.
The
US dollar has strengthened considerably against key currencies like the EURO,
GBP and
AUD
given improving US economic data and likelihood of the US Federal Reserve
increasing rates later this year.
While
the dollar has been strengthening against currencies such as the euro, the
Indian rupee has not fallen in proportion to counterbalance the impact of
falling global currencies. In the quarter, the dollar has risen only by around
0.3% against the rupee.
The
Indian National Rupee has not depreciated that significantly of late against
the USD
compared
with other global currencies, aided by factors such as favourable fund flows,
an
expected
improvement in India's GDP growth under the NDA government and lower inflation.
