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Stocks of information technology companies are likely to trade in a narrow range next week with a neutral bias following consolidation after the surge seen after the companies reported their quarterly performances. Stocks of information technology companies had touched their highs soon after the positive Jul-Sep results and have been consolidating after that. We don't expect any major movement in the stocks at least in the short term. On Wednesday, Wipro said it will discontinue manufacturing desktops, laptops and servers and will focus on its information technology solutions services business. The company said the decision was taken after evaluating the market scenario and market needs. Wipro, will, however, fulfil current deals' warranty and maintenance obligations.
Wipro's exit from the hardware business will enhance value creation for its shareholders; apart from helping the company completely focus on its IT services business. Further, after market hours on Thursday, MphasiS reported a 9.12% year-on-year fall in consolidated net profit for Aug-Oct, due to a steep decline in other income, a sharp rise in finance cost, and a lower operating margin. Consolidated net profit of the Hewlett Packard-promoted company was down at 1.90 bln rupees, despite a 22.04% year on year rise in consolidated income from operations at 15.94 bln rupees. MphasiS' Chief Executive Officer Ganesh Ayyar also said the company will concentrate on bagging mid-to-large-sized deals going forward and not target smaller orders.
Stocks of information technology companies are likely to trade in a narrow range next week with a neutral bias following consolidation after the surge seen after the companies reported their quarterly performances. Stocks of information technology companies had touched their highs soon after the positive Jul-Sep results and have been consolidating after that. We don't expect any major movement in the stocks at least in the short term. On Wednesday, Wipro said it will discontinue manufacturing desktops, laptops and servers and will focus on its information technology solutions services business. The company said the decision was taken after evaluating the market scenario and market needs. Wipro, will, however, fulfil current deals' warranty and maintenance obligations.
Wipro's exit from the hardware business will enhance value creation for its shareholders; apart from helping the company completely focus on its IT services business. Further, after market hours on Thursday, MphasiS reported a 9.12% year-on-year fall in consolidated net profit for Aug-Oct, due to a steep decline in other income, a sharp rise in finance cost, and a lower operating margin. Consolidated net profit of the Hewlett Packard-promoted company was down at 1.90 bln rupees, despite a 22.04% year on year rise in consolidated income from operations at 15.94 bln rupees. MphasiS' Chief Executive Officer Ganesh Ayyar also said the company will concentrate on bagging mid-to-large-sized deals going forward and not target smaller orders.
