IT Stocks Outlook for the week – 08 to 12.02.2016
(Seen
positive; Tech Mahindra, Wipro stock weak)
Shares
of the majority of information technology companies are seen
trading
with a positive bias next week in the wake of decent performance
by
the sector and a weak rupee against the dollar. However, shares of
Tech
Mahindra Ltd and Wipro Ltd are likely to miss the upward
momentum
as these stocks are seen continuing their weak trend.
During
the week, the National Association of Software and Services
Companies
predicted that the country's IT and business process
management
exports would hit $119 bln-$121 bln in 2016-17 (Apr-Mar),
a
growth of 10-12% from the current year ending Mar 31.
The
Indian currency, which ended at 67.64 against the dollar, is expected
to
depreciate further in the following week. Market participants are
expected
to invest cautiously in the sector, and are likely to prefer
largecap
companies.
Among
the frontline companies, Infosys Ltd, Tata Consultancy Services
Ltd
and HCL Technologies Ltd are seen gaining. Tech Mahindra, which
was
the last among the largecap companies to post its results, reported
Oct-Dec
earnings in line with expectations. The company reported a
consolidated
net profit of 7.6 bln rupees, down 3.4% on quarter and
consolidated net sales at 67.0 bln rupees, up 1.3%