Currencies pose a risk to Indian IT services, says Deutsche

Mon Mar 18, 2013 3:18pm IST

Employees work on the floor of the outsourcing company WNS in Mumbai March 19, 2012. REUTERS/Vivek Prakash/Files

Employees work on the floor of the outsourcing company WNS in Mumbai March 19, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

Reuters Market Eye - Deutsche Bank warns India's technology services sector could be hurt by currencies, offsetting a steady improvement in corporate spending outlook.

The impact from movements in the euro, sterling, and Australian dollar against the U.S. dollar could reduce U.S. revenue by 1.7-2.4 percentage points for Indian IT companies, Deutsche estimates.

The rupee would need to depreciate to 56 per dollar or below to have any meaningful impact on the appreciation of the U.S. dollar against other key billing currencies, the investment bank notes.

The research house says while Infosys Ltd (INFY.NS) would be least affected by cross-currency moves, given its lower exposure to billing in sterling and euro, HCL Technologies Ltd (HCLT.NS) would benefit the most from the depreciation of the rupee versus the U.S. dollar.

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Canada's parliament attacked, soldier fatally shot nearby.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage