IT Stocks Outlook for the week (04.06.2012-08.06.2012) Stocks of major information technology companies are likely to trade rangebound next week, and may take cues from the broad market amid lack of any sector-specific cues. The bias may, however, remain negative next week as global demand for information technology services remains under pressure. companies are banking on demand revival in the second half of the current financial year, failing which they may not meet their earnings guidance.
Investors we met this month on our US and Asia trips appeared to lack conviction about either buying or selling Indian IT services stocks. They seemed worried that there could be more downside to demand despite fallen expectations. Most sector majors, except Tata Consultancy Services, have already hinted at tepid growth for 2012-13 (Apr-Mar). While industry body NASSCOM expects the sector to grow 11-14%, sector bellwether Infosys has guided for 8-10% growth. TCS is the only company to have confidently said it will beat industry growth. Investors are likely to eye the movement of rupee against the dollar. The sharp depreciation of the Indian currency against the greenback has lifted near- term outlook for local IT companies. Software exporters are likely to see a strong benefit from the weakness in rupee. Most large Indian IT companies get nearly 70% of their revenue from the US By RUPEE DESK [email protected] -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
