Gartner's downward forecast brings down Indian IT stocks

Gartner lowered the growth forecast for global technology spending to 1.4% to $3.5 bn in 2017

Information technology (IT) research firm Gartner has reduced its growth forecast for global IT spending to 1.4 per cent or $3.5 billion in 2017, due to a strong dollar. In January, the forecast was 2.7 per cent. 

The forecast had an impact on the Indian market, with investors selling IT stocks. 

While shares of large firms such as Infosys, HCL Technologies, Wipro dropped by 2.88 per cent, 1.91 per cent and 1.64 per cent, respectively, Tata Consultancy Services remained relatively stable, with a 0.25 per cent decline on the BSE. 

Stocks of small IT firms such as Cigniti Technologies, NIIT Technologies, Cyient Technologies, were down 6.76 per cent, 2.24 per cent and 1.40 per cent, respectively. 

A sharp decline in these key stocks brought down the overall BSE information technology index by 1.62 per cent, to close at Rs 9,983.40. The IT services market is forecast to grow 2.3 per cent globally, against 3.6 per cent growth last year. Sales of devices such as mobile phones, personal computers, tablets, are however, projected to turn positive.