Shares of information technology (IT) companies are under pressure with the National Stock Exchange (NSE) IT index is trading at its four month low on concerns of weaker than-usual revenue growth on account of lower working days in December quarter.
All top four IT stocks - Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro are trading lower between 1% and 3% on the NSE.
NSE IT index was down 1.3% or 142 points at 10,893 as compared to 0.18% decline in Nifty 50. The IT index hit an intra-day low of 10,889, its lowest level since July 13, 2015.
Infosys is the largest loser, down nearly 3% at Rs 1,032, extending its previous day’s 2% fall on NSE.
According to media reports, Infosys Chief Operating Officer Pravin Rao at an investor call said that there were few challenges the company was facing currently with the long holiday period in the month of December putting pressure on the business momentum.
Surprisingly, the commentary of most of the players for December 2015 quarter indicates weaker than-usual revenue growth on account of lower working days (3.5%, according to Cognizant) and higher-than-expected furloughs, that too in some new verticals – BFSI for instance –unlike the trend in the past when it used to be restricted to Retail and Manufacturing, said Nirmal Bang Institutional Equities in a report on November 17, 2015.
Among the other individual stocks, HCL Technologies has dipped 2% at Rs 838 on the NSE. TCS down 1% at Rs 2,364 is less than 1% away from its 52-week low of Rs 2,345 touched in December 16, 2014. Wipro too, down nearly 1% at Rs 551.
Since September 30, NSE IT index was down 9.5% against 1.6% fall in the benchmark index.
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