IT shares fall on Q4 earning concerns, IT index down over 2%
HCL Technologies, Infosys and TCS are trading lower by 2.5-3% on the Bombay Stock Exchange.
Shares of information technology (IT) companies are under pressure on the bourses on concerns of lower earnings growth for the four quarter ended March (Q4FY2013).
HCL Technologies, Infosys and TCS are trading lower by 2.5-3%, while Mahindra Satyam, Wipro and Mphasis are down by around 1% each on the Bombay Stock Exchange (BSE). The BSE IT index is down 2.3% compared to 1.15% fall in benchmark Sensex at 1312 hours.
Analyst at Sharekhan expects the top four IT companies to report a decline in their margins for Q4FY2013 owing to the absence of incremental currency benefits.
The top-tier IT companies to report a sequential revenue growth of 1.4-4.1%. However, on account of depreciation in major currencies against the dollar (USD/EURO -2.9% and USD/GBP -6.4%), the reported revenues will have a negative cross-currency impact (20-60 basis points; as against positive tailwinds in Q3FY2013), analyst said in report.
HCL Technologies is the largest loser among IT pack, is down 4% to Rs 752, followed by Infosys (2.5% at Rs 2,890) and TCS (2.3% at Rs 1,507).
HCL Technologies, Infosys and TCS are trading lower by 2.5-3%, while Mahindra Satyam, Wipro and Mphasis are down by around 1% each on the Bombay Stock Exchange (BSE). The BSE IT index is down 2.3% compared to 1.15% fall in benchmark Sensex at 1312 hours.
Analyst at Sharekhan expects the top four IT companies to report a decline in their margins for Q4FY2013 owing to the absence of incremental currency benefits.
The top-tier IT companies to report a sequential revenue growth of 1.4-4.1%. However, on account of depreciation in major currencies against the dollar (USD/EURO -2.9% and USD/GBP -6.4%), the reported revenues will have a negative cross-currency impact (20-60 basis points; as against positive tailwinds in Q3FY2013), analyst said in report.
HCL Technologies is the largest loser among IT pack, is down 4% to Rs 752, followed by Infosys (2.5% at Rs 2,890) and TCS (2.3% at Rs 1,507).