IT shares extend fall as Cognizant lowers 2013 growth forecast

Infosys, TCS, HCL Technologies, Wipro and Hexaware Technologies are down 1-2% on the Bombay Stock Exchange.

Shares of Information technology (IT) companies continue to be under pressure for second day in a row after Cognizant Technology Solutions said that it expects 16% revenue growth in 2013 as against its projected 20% growth for the current year 2012.

Among the individual stocks, Infosys, Tata Consultancy Services, HCL Technologies, Wipro and Hexaware Technologies are trading lower by 1-2% on the Bombay Stock Exchange (BSE).

The BSE, IT index, the largest loser among sectoral indices, declined almost 2% compared to 1% fall in benchmark Sensex at 1028 hours. IT index has dropped 3% in past two trading sessions.

In a filing to the US market regulator Securities and Exchange Commission (SEC), Cognizant said its top executives will earn 100% of performance-linked shares if its sales expand by 16% to $8.5 billion for the year ending December 2013.

 

The rise would be lower than the 20% growth, equivalent to revenue of $7.34 billion, projected by the company in 2012, the report suggests.