Nifty IT index hits 52-week low post Cognizant revenue outlook

Shares of information technology (IT) companies have dipped up to 4% on the National Stock Exchange (NSE) in early morning trade, after Cognizant Technology Solutions Corp. said that it expected little or no growth in the three months to March.

Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tech Mahindra and MindTree were down 3%-4% on the NSE.

At 09:37 AM, Nifty IT index was down 3% or 337 points at 10,665 as compared to 1.2% decline in the Nifty 50 index. The IT index touched a 52-week low of 10,635 in intra-day trade.

Cognizant forecast revenues in the range of $3.18 billion to $3.24 billion -- suggesting that revenues will take a marginal dip or stay flat, indicating that the company expects a pickup in performance over the next three quarters of the year.

It has guided that its revenue will be in the range of $13.65-14.20 billion for the calendar year (CY16), representing a growth of 9.9-14.3%.

Cognizant said its quarterly revenue for the quarter ended December 2015 rose to $3.23 billion, up 17.9% from the year-ago quarter and 1.4% sequentially. For full year CY15, revenue increased to $12.42 billion, up 21.0% from 2014. CLICK HERE TO READ FULL RELEASE.

Among individual stocks, Infosys was down 4% at Rs 1,107 after hitting intra-day low of Rs 1,094 on the NSE. Tech Mahindra trading at its 52-week low of Rs 4576, down 3%, while HCL Technologies and TCS too down 3% each at Rs 824 and Rs 2,282 respectively.