IT Stocks Outlook for the week – 06 to 10.02.2017
IT Stocks Outlook for the week – 06 to 10.02.2017
( www.rupeedesk.in )
Stocks of information technology companies are seen trading sideways next week as US President Donald Trump's proposals to tighten immigration laws have led to heightened concerns over the sector. Trump, last Friday, passed an executive order temporarily restricting movement of citizens from seven Muslim-majority countries, seen as a strong indication of the administration's populist and anti-immigration agenda. This move deepened worries over restrictions on the number of work visas issued by the US. Information technology companies largely depend on US work visas such as the H-1B, as a large number of non-US citizens are hired to work on US-based projects. Further, a bill has been introduced in the US Congress that proposes changes in the H-1B visa process. These changes include doubling the minimum salary of H-1B visa holders from $60,000 per annum to $130,000 per annum. If passed, this bill, named High-Skilled Integrity and Fairness Act of 2017, would erode the cost advantage Indian software companies presently enjoy in the US market by hiring at a lower cost. Though investors will remain cautious over the sector, major losses are not expected in IT stocks due to their attractive valuation. During the week, Tech Mahindra, which was the last Nifty IT constituent to detail its earnings, announced better-than-expected results for Oct-Dec with a 31.3% sequential rise in consolidated net profit for the quarter.
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IT Stocks Outlook for the week – 06 to 10.02.2017
( www.rupeedesk.in )
