IT Stocks Outlook for the week – 15 to 19.02.2016
(Seen
in range; wary on near-term growth)
( www.rupeedesk.in )
Shares
of information technology companies are seen in range. On
Monday,
US-based Cognizant Technology Solution Corp had said that it
expects
Jan-Mar revenues to be flat or see negligible growth, due to
unpredictable
spending in healthcare and financial services verticals.
Following
this, we raised concerns for Indian information technology
companies,
which have high exposure to banking and healthcare
verticals.
However, allaying doubts over weak revenue visibility forecast
from
banking, financial services and insurance segment business in key
markets.
Following
suit, Infosys Chief Operating Officer Pravin Rao and Tech
Mahindra
Chief Executive Officer C.P. Gurnani said they do not foresee
any
headwinds in the banking and healthcare sector, and see good
demand
for their services. Even as we are in a down-cycle, we continue
to
have faith in the long-term growth story of Indian IT services. Our
preference
remains with companies with the most beaten down valuations
and
the lowest expectations.
The
Indian currency, which ended at 68.23 against the dollar yesterday, is
expected
to depreciate further in the following week. This may improve
the
sentiment on the sector of which majority are exporters of IT services
to the US