I.T Stocks Outlook for
the week – 25 to 29.07.2016
(Expected to be stock
specific, bullish on TCS, Tech Mahindra)
Next week, trading in information technology stocks is
expected to be stock-specific, with most
companies trading in a narrow range amid a positive bias in
the broader market.
This week, Wipro and Mindtree, among others, had posted
lower-than-expected earnings for Apr-Jun.
This weighed on sentiment in the IT sector, which was
already negative after Infosys cut its guidance
for the current financial year started April.
The rupee, which ended at 67.08 a dollar yesterday, is
expected to open down against the greenback
on Monday, as weakness in the euro and the pound sterling
may continue to weigh on it. This is seen
impacting the IT sector, which includes several large
software exporters to the US.
Investors will eye Larsen & Toubro Infotech, which will
detail its Apr-Jun earnings on Jul 28. The IT
subsidiary of infrastructure giant Larsen & Toubro
listed on stock exchanges on Thursday, at a 6%
discount to its issue price of 710 rupees.