IT stocks decline after soft US economic data

Five IT stocks declined by 0.19% to 2.94% at 14:30 IST on BSE as soft US economic data released yesterday, 25 March 2015, raised concerns about US growth.

Meanwhile, the S&P BSE Sensex was down 435.89 points or 1.55% at 27675.94.

Among IT stocks, Infosys (down 2.94%), Wipro (down 2.42%), HCL Technologies (down 1.2%), Tech Mahindra (down 0.19%) and Tata Consultancy Services (TCS) (down 1.87%) declined. US is the biggest outsourcing market for Indian IT services firms.

The BSE IT index had underperformed the market over the past one month till 25 March 2015, falling 3.42% compared with the Sensex's 3.09% fall. The scrip had however outperformed the market in past one quarter, rising 11.85% as against Sensex's 3.32% rise.

In economic data, US business investment spending plans fell for a sixth straight month in February weighed down by a strengthening dollar, weak global demand and restrained activity due to poor weather. The Commerce Department said yesterday, 25 March 2015, that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 1.4% in February after a revised 0.1% dip in January.

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