IT Stocks Outlook for
the week – 06 to 09.09.2016
Subdued next week as
negative view to continue
( www.rupeedesk.in )
Stocks of information technology companies are expected to
trade in a narrow range with a negative
bias next week as investors continue their cautious stance
on the sector. Buying in the IT sector is
expected to be limited to select frontline companies in the
four-day truncated week. Mindtree
yesterday issued a profit warning that due to various
challenges it expects weaker sales and
operating margin in Jul-Sep as compared to the quarter ended
June. Sector leader Infosys has
already said that Brexit-led challenges will continue to
impact the company's earnings and indicated a
likely second-time revision in sales growth guidance for
2016-17 (Apr-Mar).
With Mindtree issuing a profit warning, this confirms that
the financial year is a complete washout for the entire IT sector. Stocks of Mindtree, which ended down
0.9% at 548.85 rupees yesterday. Stocks of other IT companies are also expected to be impacted as
concerns over performance of peer
companies would raise. Any rise in the stocks would be
momentary as investors may chose to exit
the company.