IT Stocks Outlook for the week – 04 to 08.07.2016
(Seen in a range as Brexit, fall in Sterling weigh)
( www.rupeedesk.in )
The stock of most of the information technology companies are
Likely to trade in a range next week as UK's decision to leave the European
Union and currency volatility are seen weighing on the sector. The stocks are expected not to see any high losses or gains next
week as market participants are likely to remain cautious on the sector ahead
of the Apr-Jun earnings due shortly.
The Apr-Jun earnings of IT companies are likely to be impacted due
to slow client decision making, global economic challenges and around 10% fall in Pound Sterling.
The Mid-cap firm KPIT Technologies during the week said it expected its Apr-Jun sales to
fall around 4% with consequent
drop in profitability" due to several challenges, including
soft demand for enterprise resource planning Solutions. The company also
expects sales and profit for Jul-Sep quarter to be flat sequentially.
KPIT Technologies target price by 11% to 170 rupees with a 'Hold'
rating. Movement is likely to be stock-specific in large-cap firms as market participants may
choose to invest in them for the long term. Large-cap IT stocks has become
attractive due to low valuations.
