Shares of information technology (IT) companies are trading firm in otherwise weak after a four-day fall on the bourses.
Tata Consultancy Services (TCS), Wipro, Infosys, Tech Mahindra, HCL Technologies and Hexaware Technologies are up 1-3% on the Bombay Stock Exchange (BSE).
The S&P BSE IT index, the largest gainer among sectoral indices, is up 2.19% or 190 points as compared to 0.33% or 72 points fall in S&P BSE Sensex at 1250 hours.
In past four trading sessions, the IT index has tanked 7.3% against 0.10% decline in benchmark index, till yesterday.
Last week, the BSE S&P BSE IT index recorded its sharpest weekly fall in the past eleven months. On Wednesday, it slipped over 2.6% in intra-day deals before settling 2.2% lower at 8,668 – its lowest level in the last three months.
The fall in IT stocks in the last few sessions got accentuated after the country's second largest software services firm, Infosys, said that it might only be able to meet the lower end of its guidance for FY14, suggesting flattish to a slight decline in sequential revenue in January–March quarter (Q4FY14).
On Tuesday, after market hours, TCS management also indicated that along with expected seasonal softness in international revenues (vs. 3Q), domestic revenues are also likely to be weak in Q4FY14 due to hit in IT spends ahead of the upcoming Central Government elections.
Meanwhile, most of the analyst remains overweight on the IT sector.
R Sreesankar, head – institutional equities, Prabhudas Lilladher says, we remain overweight on Infosys, Tech Mahindra and Wipro and have an accumulate rating on TCS.
Vaibhav Sanghavi, director – equities at Ambit Investment Advisors also believes that strengthening of currency and the guidance downtick by Infosys and TCS has impacted sentiment but expects an improvement going ahead.
Among the individual stocks, TCS and Hexaware Technologies are up 3% each at Rs 2,110 and Rs 151 respectively, while Wipro, Infosys and Tech Mahindra are up 2% each on the BSE.
The S&P BSE IT index, the largest gainer among sectoral indices, is up 2.19% or 190 points as compared to 0.33% or 72 points fall in S&P BSE Sensex at 1250 hours.
In past four trading sessions, the IT index has tanked 7.3% against 0.10% decline in benchmark index, till yesterday.
Last week, the BSE S&P BSE IT index recorded its sharpest weekly fall in the past eleven months. On Wednesday, it slipped over 2.6% in intra-day deals before settling 2.2% lower at 8,668 – its lowest level in the last three months.
The fall in IT stocks in the last few sessions got accentuated after the country's second largest software services firm, Infosys, said that it might only be able to meet the lower end of its guidance for FY14, suggesting flattish to a slight decline in sequential revenue in January–March quarter (Q4FY14).
On Tuesday, after market hours, TCS management also indicated that along with expected seasonal softness in international revenues (vs. 3Q), domestic revenues are also likely to be weak in Q4FY14 due to hit in IT spends ahead of the upcoming Central Government elections.
Meanwhile, most of the analyst remains overweight on the IT sector.
R Sreesankar, head – institutional equities, Prabhudas Lilladher says, we remain overweight on Infosys, Tech Mahindra and Wipro and have an accumulate rating on TCS.
Vaibhav Sanghavi, director – equities at Ambit Investment Advisors also believes that strengthening of currency and the guidance downtick by Infosys and TCS has impacted sentiment but expects an improvement going ahead.
Among the individual stocks, TCS and Hexaware Technologies are up 3% each at Rs 2,110 and Rs 151 respectively, while Wipro, Infosys and Tech Mahindra are up 2% each on the BSE.
