At a time when most American and European service companiesIT (Information Technology) suffer a slowdown in business due to the crisis of their respective economies, the weakness of the rupee benefits Indian rivals. Results for the quarter ended December are not yet known, but experts expect to see some vitality in local currency earnings.
“The US dollar market – concludes a CLSA report – will continue to present downside risks. However, a rupee-friendly environment should ensure margins and Infosys it is the company best placed to take advantage of this situation”. Infosys will announce its quarterly results tomorrow, while fellow industry leaders Tcs and Hcl Technologies will release new data on January 17. Globally, analysts remain cautious on the IT services sector, but are revising profits and price targets for manufacturers upwards.
http://timesofindia.indiatimes.com/business/india-business/Weak-rupee-to-boost-Q3-results-of-IT-cos/articleshow/11440988.cmsCapital
