IT Stocks Outlook for the week – 21 to 25.03.2016
Seen in range; Infosys may cross
all-time high
( www.rupeedesk.in )
Stocks
of information technology companies are likely to move in a narrow range with
positive bias
next
week, which will see trading only on the first three days. Markets will be
closed on Thursday and Friday for Holi and Good Friday, respectively.
Even
though few headwinds prevail for the sector, stock-specific performance is
expected to improve
sentiments
of the investors and market participants.
The
rupee, which closed at 66.50 against the dollar yesterday, is likely to
appreciate against dollar on
prevailing
positive risk sentiment following dovish stance by US Fed.
The
US Federal Reserve left rates unchanged and forecasted just two rate hikes of
25 basis points each in 2016. Rupee appreciation, though expected to be
momentary, is seen partially impacting investor sentiment on the IT sector
negatively.
Also,
visa concerns have resurfaced for the sector. The UK government has increased
visa fees for
tourist,
students and workers, effective from yesterday. And with US Republican
presidential
frontrunner
Donald Trump rallying against H-1B work visa issued to immigrant employees,
things
seem
to be bleak for the sector which is one of the largest users of the work visa.
However,
stocks of Tata Consultancy Services are expected to be rangebound as mixed view
on the
company
post management meet. TCS showcased its digital offerings across key verticals
including
banking,
financial services, and insurance, retail, healthcare and energy.