IT firms sink in morning trade on bourses

Already under pressure, shares of software services firms shed 1-6% in early trade today after bellwether Infosys reported muted first quarter results amid a weak broader market.

The BSE IT index was the biggest loser in the broader market, falling by nearly 4% to a low of 5,851.37 points in early trade. It was later trading at 5,881.19 points, down 3.46% from its last close.

Infosys tumbled by as much as 6% to Rs 2,749.35 and dragged other software firms down as well. Larger rival Tata Consultancy Services shed 3.64% to a low of Rs 1,113.65.

Other software firms also witnessed a similar trend in morning trade on the bourses, with Wipro falling as much as 3%, while HCL Tech was down 2.11%, MPhasis 2.25% and Tech Mahindra 1.90%.

"Infosys results were not up to the mark and if there is any nasty surprise ahead for TCS, then the whole IT sector can get downgraded," Ashika Stock Broking Research Head (Equities) Paras Bothra said.

However, three companies defied the broader market trend and were trading in the positive territory, including Patni, which was trading at Rs 339, up 0.73%, and Oracle at Rs 2,297.05, up 0.06% on the BSE.