Zee Business Managing Editor Anil Singhvi expects profit booking in many IT stocks from here as most top stocks have already had a good run since the announcement of Tata Consultancy Services’ buyback and strong results. The Managing Editor said that this stock has become stable since the announcement of results and the buyback offer.  

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Wipro will announce its September Quarter results today and Infosys will declare the results on Wednesday. 

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The buyback offer has also been announced by other IT companies including Wipro. Singhvi said that there is not much scope of a strong rally from here as the IT stocks have already seen great momentum.  

The trends set up by TCS is already discounted by the markets. This does not mean that the prices may not rise further, he clarified. 

The Market Guru further advised investors to look at the risk reward ratio while making investments in IT stocks. 

On viewers query to Zee Business whether they should still invest in TCS stock, Singhvi said that the buyback offer declared by the company this time does not indicate a ratio that would suggest a clear-cut profit. 

The acceptance ratio for investors who have investments below Rs 2 lakh in TCS is not substantial, he added. 

The stock may see a rise with the market rally, he further said. As the news on results and buybacks pour in, the opportunities to earn high gains is narrowing, the Managing Editor said. 

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As an advice, Singhvi said that investors who are still willing to trade in the IT stocks should trade before the announcement of results and buyback offer.