IT stocks tumble after weak US data

Nine IT shares fell by 0.44% to 2.96% at 9:34 IST on BSE after weak economic data in the United States.

Hexaware Technologies (down 2.96%), HCL Technologies (down 2.94%), Tech Mahindra (down 2.44%), Wipro (down 2.05%), TCS (down 2.03%), CMC (down 1.98%), Infosys (down 1.43%), MphasiS (down 1.36%) and Oracle Financial Services Software (down 0.44%), edged lower.

The S&P BSE IT index fell 1.63% to 9,169.31. It underperformed the S&P BSE Sensex, which fell 1.06% to 19,994.44.

The S&P BSE IT index had outperformed the market over the past one month till 3 February 2014, rising 0.99% compared with the Sensex's 3.08% fall. The index had outperformed the market in past one quarter, rising 10.25% as against Sensex's 4.85% decline.

Data showed factory activity in the US expanded in January at the weakest pace in eight months as orders slumped, a sign manufacturing cooled at the start of the year along with the weather. The Institute for Supply Management's factory index decreased to 51.3 from 56.5 the prior month, the Tempe, Arizona-based group's report showed. Readings above 50 indicate expansion.

US is the biggest outsourcing market for the Indian IT firms.

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