IT stocks edge lower on worries of drop in market share to global peers

Shares of eight IT firms dropped 0.01% to 5.37% at 11:54 IST on BSE on reports that Indian IT companies are losing market share as IT outsourcing companies clients are increasingly favouring local firms while awarding technology contracts.

Meanwhile, the S&P BSE Sensex was down 199.82 points or 0.7% at 28,242.28.

Among IT stocks, MindTree (down 5.37%), Infosys (down 2.61%), Persistent Systems (down 2.05%), MphasiS (down 1.86%), Tech Mahindra (down 1.68%), TCS (down 1.46%), HCL Technologies (down 0.63%) and Wipro (down 0.01%) edged lower.

According to the report, Indian software services exporters won about 8% of total deals awarded by customers during the January-March period, down from about 13% in the April-June period of the fiscal year 2014-15. In terms of total value, this ratio, too, dropped from around 12% down to just 7% over the course of the year.

The BSE IT index had underperformed the market over the past one month till 17 April 2015, sliding 4.7% compared with Sensex's 1.02% fall. The index had, however, outperformed the market in past one quarter, advancing 1.62% as against Sensex's 1.14% rise.

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