IT Stocks Outlook for the week – 15 to 19.06.2015 (IT companies are broadly seen positive next week)

IT Stocks Outlook for the week – 15 to 19.06.2015

(IT companies are broadly seen positive next week)

 ( www.rupeedesk.in )

Stocks of information technology companies are broadly seen positive next week, but concerns over visa issues could cap gains. If the broader markets continue to remain weak despite better-thanexpected industrial production numbers and stable inflation, there could be some buying in IT stocks.

The rupee-dollar movement will also be the key. The Indian currency continued to weaken, and ended below the 64-to-a-dollar mark today. If it remains there or falls further, it would be seen as a positive for most IT companies which will benefit largely being exporters.

The US dollar is expected to strengthen further as a series of upbeat data suggesting a recovery in the US economy has stoked expectations of an interest rate hike by the US federal reserve as soon as September. Resurfacing of the US visa issues, bringing into focus two large-cap IT Companies-- Infosys and Tata Consultancy Services Ltd--may weigh on sentiments. The New York Times had reported that the US Department of Labor had commenced investigations against Infosys and TCS for possible H1-B visa violations. Though IT giants have said they are rigorously following the US visa norms, the focus will be on them as market participants await updates. Gains from these stocks may be capped.