IT Earnings: Tech Firms See Over Rs 22,000 Crore Of Open Interest Build Up Ahead Of TCS Q3 Results
The markets have build up positions in the technology sector, with foreign investors net investing $1.70 billion in November and December.
Technology companies will start announcing their third quarter financial earnings with Tata Consultancy Services Ltd. announcing its results after market hours on Jan. 9, 2025.
The markets have build up positions in the technology sector, with foreign investors net investing $1.70 billion in November and December. This has also led to a surge in open interest in the technology companies since November-end.
The Futures Open Interest in the nine technology stocks stood at over Rs 22,200 crore on Jan. 8. The maximum open interest is seen in Infosys Ltd., which carried open interest of Rs 8,344 crore in the futures segment. It was followed up by TCS, which had a futures open interest of Rs 4,533 crore ahead of its earnings.
HCL Technologies Ltd. had futures open interest of Rs 2,388 crore while Wipro Ltd. and Tech Mahindra Ltd. had futures open interest of Rs 1,653 crore.
Nifty IT has fallen by 3–4% in the last one month. meanwhile, open interest in nine tech companies' futures has risen by over Rs 1,200 crore during the same period.
The December quarter is considered seasonally weaker for tech companies due to lower number of working days and furloughs. This brings down the billable revenue for tech companies. Revenue is expected to be flat for the companies with cushion coming from rupee depreciation.
The aggregate revenue growth in the third quarter is expected to moderate slightly to 0.7% sequentially in constant currency terms, given usual seasonality, according to Jefferies.
With Donald Trump set to take oath as the next US President on Jan. 20, investors have hedged their position against any measures that would impact outsourcing and increase costs of doing business for Indian tech companies.
