CNX IT index hits three-month low; Wipro down 4%

Shares of information technology (IT) continue to witness selling pressure after most of the frontline companies in the sector reported disappointing earnings for the quarter ended March 2015.

Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies and Tech Mahindra were down 1%-4% on the National Stock Exchange (NSE).

CNX IT index, the largest loser among sectoral indices, was down 1.3% or 141 points at 11,418 compared with 0.04% rise in the CNX Nifty at 8,381 at 1040 hours. IT index hit a low of 11,406, its lowest level since January 2015, in intra-day trade today.

In past six trading sessions, CNX IT index was down 7.4% against 5% fall in the benchmark index.

Wipro, the largest loser from IT pack, has dipped 4% at Rs 554, after the company said it’s IT Services revenue in dollar terms declined by 1.2% at $1.774.50 million for the quarter ended March 2015 (Q4FY16), on sequential basis.

For Q1FY16, Wipro expects revenues from IT Services business to be in the range of $1,765 million to $1,793 million, a decline of 0.53% to growth of about 1% over the previous quarter.

HCL Technologies was down 2% at Rs 874, extending its previous day’s nearly 4% fall, after reported a 12% quarter-on-quarter decline in its consolidated net profit at Rs 1,683 crore for the third quarter ended March 2015. The company had reported a profit of Rs 1,915 crore in December 2014 quarter.

Meanwhile, analyst at Angel Broking maintains ‘buy’ rating on both the stocks with target price of Rs 1,148 for HCL Technologies and Rs 753 for Wipro.