IT Stocks Outlook for the week – 25 to 29.01.2016
Seen
in range with positive bias next week
( www.rupeedesk.in )
Stocks
of information technology companies are expected to trade in range with a
positive
bias next week, as investors' confidence in the sector is seen regaining on the
back
of positive outlook for the coming quarters, and weakening rupee. With the four
large-cap
companies having guided positive outlook for Jan-Mar, the view on the
sector
is improving. Also, management statements on better client spend, and demand
for
digital services has reassured of the potential in the sector.
HCL
Technologies management said it expects the second half of the current fiscal
to
be
better than the first half, on the back of strong order book. Additionally, the
Indian
currency
has been depreciating against the dollar, and is expected to fall further.
Yesterday,
however, the rupee settled at 67.6250 a dollar, as against 68.0300 on
Thursday.
A falling rupee gives respite to the sector as majority of the companies are
exporters
of services. Tata Consultancy Services' stocks are likely to gain the least in
the following sessions.