IT Stocks Outlook for the week (25-29.06.2012)

[rupeedesk]

IT Stocks Outlook for the week (25-29.06.2012)

Stocks of major information technology firms are seen marginally up next week as the depreciation in the rupee to an all-time low of 57.33 against the dollar today is seen benefiting software exporters. However, high volatility in the currency market is seen hurting IT companies in the near-term and may therefore cap the upside in their stocks. "If we were to look at just the IT sector, the weakness in rupee is positive. It gives room in their margins...(but) the volatility in the currency makes planning a bit challenging.

KPIT Cummins Infosystems Ltd's Vice President and Head-Corporate Finance and Governance Anil K. Patwardhan had also told NewsWire18 last month that the "overall volatility (in rupee) brings a lot of challenges in terms of planning. The Indian unit has depreciated 11.3% since the beginning of the current financial year, and has been oscillating between 54-56 rupees against the dollar since last month. In most cases, clients also see the benefit that comes from the currency.