IT stocks fall after Cognizant cuts 2019 revenue guidance; TCS drops 2%

Cognizant forecast 2019 revenue growth in the range of 3.6 per cent and 5.1 per cent in constant currency, compared with between 7 per cent and 9 per cent earlier.

Information technology (IT) stocks came under pressure in the early trade on Friday, after the US-based IT services company Cognizant nearly halved its 2019 revenue expectations after missing first-quarter results, as it faces sluggish demand in its financial and healthcare businesses. 

At 09:57 am, the Nifty IT index was trading at 16,157 levels, down 246 points or 1.50 per cent with all the 10 constituents in the red. NIIT Tech, Tech Mahindra and TCS were the top losers, falling over 2 per cent each. The index was the biggest sectoral loser on NSE. In comparison, the Nifty50 index was