I.T Stocks Outlook for the week - 13 to 17.02.2017
I.T Stocks Outlook for the week - 13 to 17.02.2017
( www.rupeedesk.in )
Stocks of information technology companies are seen rising next week as tensions over the sector have eased temporarily. However, significant gains are not expected as focus would be only on select stocks. A US federal court on Thursday rejected President Donald Trump's plea to impose a travel ban on immigrants from seven Muslim countries. After Trump assumed the office of US President in January, uncertainty over immigration norms had risen. The possibility of him acting on his election promises to restrict outsourcing of jobs and bringing in stricter immigration norms have heightened. However, the rejection from the US court meant that it will become difficult for Trump to act on his promises. Investors and interested parties see this as positive for the sector which has been facing the possibility of adverse changes in the US work visa norms. Any adverse changes in the norms would take a hit on the companies' performance as they are heavily dependent on the employees hired on visas. Stocks of information technology companies ended up 1-3% on the news today. Additionally, Trump at a meeting with executives from the aviation sector on Thursday said that over the next two or three weeks, he would announce phenomenal changes in corporate tax in the US. These changes are largely expected to boost business of companies in the US, leading to a rise in business from the financial services sector companies to information technology companies. The financial sector in the US is the top revenue generator for Indian technology companies. Another development that may comfort the IT sector is that the Indian government plans to talk to all stakeholders, including IT companies, the industry lobby group National Association of Software and Services Companies, and the US government on the immigration issues in US. Founders of Infosys had raised concerns over issues of transparency and corporate governance at the company. There are reports of several claims of discord between the founders on one side and board and management on the other.
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I.T Stocks Outlook for the week - 13 to 17.02.2017
( www.rupeedesk.in )
Stocks of information technology companies are seen rising next week as tensions over the sector have eased temporarily. However, significant gains are not expected as focus would be only on select stocks. A US federal court on Thursday rejected President Donald Trump's plea to impose a travel ban on immigrants from seven Muslim countries. After Trump assumed the office of US President in January, uncertainty over immigration norms had risen. The possibility of him acting on his election promises to restrict outsourcing of jobs and bringing in stricter immigration norms have heightened. However, the rejection from the US court meant that it will become difficult for Trump to act on his promises. Investors and interested parties see this as positive for the sector which has been facing the possibility of adverse changes in the US work visa norms. Any adverse changes in the norms would take a hit on the companies' performance as they are heavily dependent on the employees hired on visas. Stocks of information technology companies ended up 1-3% on the news today. Additionally, Trump at a meeting with executives from the aviation sector on Thursday said that over the next two or three weeks, he would announce phenomenal changes in corporate tax in the US. These changes are largely expected to boost business of companies in the US, leading to a rise in business from the financial services sector companies to information technology companies. The financial sector in the US is the top revenue generator for Indian technology companies. Another development that may comfort the IT sector is that the Indian government plans to talk to all stakeholders, including IT companies, the industry lobby group National Association of Software and Services Companies, and the US government on the immigration issues in US. Founders of Infosys had raised concerns over issues of transparency and corporate governance at the company. There are reports of several claims of discord between the founders on one side and board and management on the other.
