Most of the IT companies hedge foreign currency to safeguard their position to a larger extent. They are also capable of managing their currency position pretty actively. Recently the 8% drop in the rupee was unprecedented. We are not certain how positive this has been for the IT companies and we will only get to know in their quarterly result. Over the past few days there has been a lot of movement in these stocks when the rupee has depreciated with most of them increasing from their earlier levels as the revenue for most of these comes in the form of Dollar (USD).
In Wipro, the major issues that they had seen was the management change. So when we compare the three companies Wipro is the weakest among the other two as they are going through a lot of internal pain. Apart from this they are facing issues outside, which is because of the economic slowdown across Europe & US.
When it comes to choosing a stock the think which we generally look at is the business of the company. A buy on Wipro seems less favorable compared to the options such as Infosys or TCS unless there is any special reason for holding that stock. If someone is looking for a buy in the IT sector then they should go ahead for Infosys or TCS which looks a much lucrative buy.
“Bell the bull says: There lies great value in the IT stocks among which TCS and Infosys are the one who can handle the position better”.