TCS, HCL Tech wipe out nearly Rs 50,000 crore investor wealth
At 1215 pm, TCS lost around Rs 40,254 crore and HCL Technologies eroded Rs 9,563 crore of market wealth.
 "TCS, HCL Tech wipe out nearly Rs 50,000 crore investor wealth")
Shares of information technology (IT) majors like Tata Consultancy Services (TCS) and HCL Technologies fell sharply by over 8% each in trade today, wiping-out collectively nearly Rs 50,000 crore of investors wealth, after lower-than-expected earnings for the quarter ended September 2014 dented sentiment.
At 12:15 pm, TCS stock was down 7.8% at Rs 2,473 on the BSE. The company's market value dropped by Rs 40,254 crore to Rs 484,452 crore from yesterday's Rs 524,706 crore.
HCL Technologies too dipped 8.2% to Rs 1,520, have seen its market value erosion by Rs 9,563 crore to Rs 106,575 crore. The company had market capitalisation of Rs 116,138 crore on Thursday.
Shares of TCS have dipped 8.5% to Rs 2,451 during intra-day deal on BSE after 6.4% quarter-on-quarter growth in dollar revenue against street expectation of 7.3-8%.
However, analyst at Prabhudas Lilladher retains ‘Buy’ rating on TCS with revised target price of Rs 2,800 from Rs 2,900.
“We see moderation in street’s revenue expectation. Hence, the stock may remain under pressure in the near term. We continue to view TCS as one of the most competitive players with the prospect of growing ahead of NASSCOM’s guidance,” analysts at Prabhudas Lilladher said in a report.
HCL Technologies, too, slipped nearly 9% to Rs 1,511 in early morning deals after reported lower than expected revenue at Rs 8,735 crore for the quarter ended September 2014. Analysts, on an average, had expected revenues of Rs 8,804 crore from the country’s fourth-largest software services exporter. Its dollar revenue growth of 3.2% on sequential basis, was lower compared its peers Infosys (3.2%) and TCS (6.4%).
At 12:15 pm, TCS stock was down 7.8% at Rs 2,473 on the BSE. The company's market value dropped by Rs 40,254 crore to Rs 484,452 crore from yesterday's Rs 524,706 crore.
HCL Technologies too dipped 8.2% to Rs 1,520, have seen its market value erosion by Rs 9,563 crore to Rs 106,575 crore. The company had market capitalisation of Rs 116,138 crore on Thursday.
Shares of TCS have dipped 8.5% to Rs 2,451 during intra-day deal on BSE after 6.4% quarter-on-quarter growth in dollar revenue against street expectation of 7.3-8%.
However, analyst at Prabhudas Lilladher retains ‘Buy’ rating on TCS with revised target price of Rs 2,800 from Rs 2,900.
“We see moderation in street’s revenue expectation. Hence, the stock may remain under pressure in the near term. We continue to view TCS as one of the most competitive players with the prospect of growing ahead of NASSCOM’s guidance,” analysts at Prabhudas Lilladher said in a report.
HCL Technologies, too, slipped nearly 9% to Rs 1,511 in early morning deals after reported lower than expected revenue at Rs 8,735 crore for the quarter ended September 2014. Analysts, on an average, had expected revenues of Rs 8,804 crore from the country’s fourth-largest software services exporter. Its dollar revenue growth of 3.2% on sequential basis, was lower compared its peers Infosys (3.2%) and TCS (6.4%).