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

Photo

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Jaitley's Health

Jaitley's Health

Finance Minister Jaitley in isolation ward, may skip U.S. trip.  Full Article 

China Factory

China Factory

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Vadodara Violence

Vadodara Violence

Police arrest 140 for religious clashes in Vadodara as Modi tours U.S.  Full Article 

Japan Economy

Japan Economy

Economy takes another hit as spending, factory output fall  Full Article 

AIG Bailout

AIG Bailout

Six years after AIG bailout, trial asks: was it legal?  Full Article 

Reuters India Mobile

Reuters India Mobile

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