I.T Stocks Outlook for the week – 21 to 25.11.2016
Stocks of information technology companies are seen trading in a narrow range next week on persisting after-effects of the US presidential elections. Uncertainties surrounding the likely policies of US President-elect Donald Trump are seen weighing on the sector that gets 48-85% of its revenue from investors are expected to continue their cautious view on the sector. Trump, during his campaign, had promised stringent immigration and trade norms, which are likely to hurt earnings of Indian IT companies. Considering all, it makes sense avoiding IT space till clarity emerges. We expect it will trade with side ways to bearish bias in near-term. Even though investment sentiment is seen largely weak, the domestic market is expected to recover next week after closing at its lowest levels in nearly six months. Additionally, the Indian currency, which ended at 68.13 rupees to a dollar, is expected to further weaken next week. This might bring some respite to the sector that constitutes of large software exporters. However, do not expect the rupee to impact the sector as globally software exports are likely to weaken.
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Stocks of information technology companies are seen trading in a narrow range next week on persisting after-effects of the US presidential elections. Uncertainties surrounding the likely policies of US President-elect Donald Trump are seen weighing on the sector that gets 48-85% of its revenue from investors are expected to continue their cautious view on the sector. Trump, during his campaign, had promised stringent immigration and trade norms, which are likely to hurt earnings of Indian IT companies. Considering all, it makes sense avoiding IT space till clarity emerges. We expect it will trade with side ways to bearish bias in near-term. Even though investment sentiment is seen largely weak, the domestic market is expected to recover next week after closing at its lowest levels in nearly six months. Additionally, the Indian currency, which ended at 68.13 rupees to a dollar, is expected to further weaken next week. This might bring some respite to the sector that constitutes of large software exporters. However, do not expect the rupee to impact the sector as globally software exports are likely to weaken.
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