Morgan Stanley expects mixed results from top IT cos
The investment bank says uncertainty post June-quarter results would be an opportunity to accumulate stocks with low expectations and modest valuations.
Morgan Stanley expects mixed June-quarter results from the top four Indian tech companies-Tata Consultancy Services, Infosys, Wipro and HCL Technologies-, with muted revenue guidance but a steep EPS upside.
The investment bank says uncertainty post June-quarter results would be an opportunity to accumulate stocks with low expectations and modest valuations, such as Infosys, HCL Technologies and Mindtree.
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Shares are trading lower on recent weak economic data in the US, which is the biggest outsourcing market for Indian IT firms, and recent gains in rupee, which is at a 1-1/2 month high, are also weighing, traders say.
A firm rupee adversely affects operating profit margins of IT firms as the sector derives a major part of its revenue from exports.
More from InvestingTata Consultancy Services fell 2.13 percent, Infosys declined 0.5 percent while Wipro lost 0.21 percent.
Reuters
