Stocks of major information technology companies are seen rangebound next week due to lack of sector-specific triggers as earnings of most companies have already been announced. All results are out as such, there is no event next week, so we see a rangebound movement in IT stocks in coming sessions. Our expect are of the view that stocks in the sector will mainly be market driven and also be governed by rupee movement to some extent.
Local indices too are seen in a narrow band next week, with quarterly earnings of companies likely to drive the trend. Investors will also eye inflation data for July, due Tuesday. The rupee is seen depreciating further in the coming sessions due to global economic worries and tracking the euro. The rupee today ended at 55.28 per dollar against Thursday's close of 55.27.
Indian software exporters remain vulnerable to the movement of rupee against the greenback as they get nearly 65% of their revenue from the US. HCL Technologies is expected to attract profit booking, while Infosys is seen moving in a range. Since Tech Mahindra Apr-Jun earnings were announced Thursday, the stock may consolidate over the next few sessions and then move higher. Tech Mahindra reported a 12% sequential rise in Apr-Jun consolidated net profit at 3.38 bln rupees aided by better operating performance.
(www.rupeedesk.in)
