I.T Stocks Outlook
for the week – 17 to 21.10.2016
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Information technology companies are expected to be volatile
next week as investors align
their positions after a dismal show by sector peers Tata
Consultancy Services and Infosys in
the September quarter.
The broader market is expected to consolidate next week as
investors would be cautious
ahead of corporate earnings for the quarter ended September
and due to lack of significant
triggers. Focus will now shift to Wipro, HCL Technologies,
and Mindtree who will detail their
earnings on Friday.
Tata Consultancy Services reported its lowest ever
quarter-on-quarter rise in sales, recording
a meagre 1% growth in constant currency terms. The software
major's consolidated net
profit rose 4.3% on quarter to 65.86 bln rupees.
Infosys decided to cut its dollar sales growth guidance by
260-310 basis points to 8.2-9.2%
for the current financial year, thereby spooking several
investors who were expecting only a
100-basis-point cut. The Bengaluru-based firm's decision to
cut the sales growth target for
the second time since April led to the Nifty IT index
hitting a six-month low of 10116.70
points intraday.
For the next week, movement in the IT sector is expected to
be stock-specific. Negative
sentiment in Infosys' stock is likely to persist next week
while Tata Consultancy Services'
stock
may see some buying