I.T Stocks Outlook
for the week – 18 to 22.07.2016
(In range; Infosys'
sales growth aim cut to weigh)
( www.rupeedesk.in )
Stocks of information technology companies are seen trading
in a range with negative bias next week
after sector leader Infosys cut sales growth guidance for
2016-17 (Apr-Mar). Losses in the sector are
seen restricted as optimism in the broader market and rupee
movement are seen reviving the
sentiment.
The Indian currency, which ended at 67.0625 rupees against
the dollar, is expected to trade in a narrow range next week. During the week, Tata Consultancy Services
and Infosys detailed their Apr-Jun earnings.
Yesterday, Infosys cut its sales growth guidance in dollar
terms for 2016-17 (Apr-Mar) to 10.8-12.3%
from 11.8-13.8% earlier. The IT major also cut its sales
growth guidance in rupee terms to 11.7-13.2% from 12.7-14.7%, and in constant currency terms to
10.5-12.0%, compared with 11.5-13.5% earlier. The Bengaluru-based company reported a 4.5% sequential
decline in its consolidated net profit to 34.4 bln rupees in Apr-Jun. Its consolidated net sales rose 1.4%
on quarter to 167.8 bln rupees in Apr-Jun. Despite weak earnings.
