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Informist, Friday, Jan. 24, 2025

MUMBAI – Shares of information technology companies are expected to remain range-bound in the coming week as analysts do not expect any surprises ahead of the Union Budget. IT stocks may see movement depending on the announcements made during the Budget or starting from Feb. 3, Rishubh Vasa, research analyst at Indsec Securities, said.

However, the Union Budget will not be the main trigger for the IT sector, Vasa said. Market participants will keenly look for US President Donald Trump's commentary on policy measures. Vasa expects the Trump administration to focus more on investments in the technology segment. That will in turn benefit Indian IT companies as technology spending will improve. The Trump administration is seen in favour of cutting taxes, which will make companies better positioned for discretionary spends, Piyush Pandey, senior vice president and lead analyst at Centrum Broking, said.

With commentary on client budgets expected from February, IT stocks are expected to see some volatility, a research analyst covering the sector at a domestic brokerage firm said. With clarity on client spending, and commentary from companies after Apr-Mar earnings, the IT index may reach 46100 levels in the near term, Vasa said.

This week, the Nifty IT index closed 3.6% higher at 43524.10 points. Next week, the index's support is seen at 42825.30 and resistance at 44308.60. In comparison, the benchmark Nifty 50 and the BSE Sensex declined 0.5% and 0.6%, respectively, this week. All the 10 constituents of the Nifty IT index gained over the week. Wipro, Coforge, Persistent Systems and Mphasis were the top gainers.

Mid-cap IT companies including Coforge, Persistent Systems, Zenser Technologies, Cyient, Mphasis, and Tata Technologies announced their Oct-Dec earnings this week. While most reported positive earnings for the December quarter, Cyient was the sole under-performer. The strong set of numbers reported by Coforge and Persistent Systems and positive commentary from their managements resulted in both the stocks rising 10% on Thursday, a research analyst covering the sector at a domestic brokerage firm said.

TOP HEADLINES

* Analyst Concall: Jan-Mar sequential sales growth seen at 3-yr high - Mphasis    
* Infosys board approves merger of German arms into In-tech    
* Earnings Review: Mphasis beats Streets view, earnings up marginally on qtr    
* Intellect Design to take charge of Central 1's digital banking ops    
* Cyient Oct-Dec consol net profit falls 31.7% QoQ to INR 1.22 billion    
* Newgen Software's US-based arm gets orders worth $3.01 mln    
* Telangana says Infosys to expand Hyderabad Pocharam campus, add 17,000 jobs    
* Govt notice to Apple after users report issues with latest software update    
* NCLAT stays CCI order asking WhatsApp not to share user data with Meta cos    
* Analyst Concall: Coforge sees definite, yet gradual improvement in demand    
* Earnings Review: Coforge QoQ sales growth unexceptional, dn to single digit    
* Analyst Concall: Persistent Systems sets sights on $5 bln revenue by FY31    
* Earnings Outlook: Mphasis consol PAT, revenue seen down on qtr, up on year    
* Earnings Review:Persistent Systems beats Street view, consol PAT up 14.8% QoQ    
* Zensar Tech Oct-Dec consol PAT rises 2.6% QoQ to INR 1.6 billion    
* Analyst Concall: Svcs ops sales grew 1.1% QoQ amid tough environ - Tata Tech    
* Earnings Review:Tata Tech Oct-Dec QoQ PAT growth highest since Jul-Sept 2023    
* Tanla Platforms Oct-Dec consol PAT falls 9% QoQ to INR 1.19 billion    
* Earnings Outlook: Strong order book to drive Persistent Systems' earnings        
* Tata Elxsi, Minespider partner to launch battery lifecycle tracking platform    
* Intellect Design insurance tech unit signs US-based R.E. Chaix as new client    
* ICRA assigns 'AA+' rating to Persistent Systems with stable outlook    
* IPO Alert: Hexaware Tech gets SEBI nod to raise INR 99.5 bln via OFS    
* TCS opens centre in France to drive AI-powered transformation for aerospace    
* Cyient gets multi-year contract from Deutsche Aircraft    
* Newgen Software's Oct-Dec profit rises 26.5% on qtr to INR 890 mln    
* HC orders mediation in On4Off Trading-NPCI credit card-UPI pay patent case    
* Netweb Tech Oct-Dec net profit rises 17.9% on quarter to INR 303.22 mln    
* Analyst Concall: Tech Mahindra eyes large deals to drive revenue going ahead    
* Wipro sees discretionary spend, US business rising; margins range-bound    
* Analyst Concall: Don't see margin rising for now, aim 17.5% Jan-Mar - Wipro    
* Earnings Review: Tech Mahindra misses Street view, consol PAT down 21% QoQ    
* Earnings Review: Wipro sales flat QoQ in Oct-Dec, but above expectations 

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 86.20

Reported by Arya S. Biju

Edited by Ashish Shirke

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