Seven IT shares fell by 0.12% to 2.24% at 14:05 IST on BSE after Infosys lowered its full year revenue growth guidance in dollar terms for the year ending 31 March 2016 at the time of announcement of Q2 September 2015 results.
MindTree (down 2.24%), Infosys (down 2.21%), Oracle Financial Services Software (down 1.58%), TCS (down 1.25%), Wipro (down 1.04%), Hexaware Technologies (down 0.44%) and MphasiS (down 0.12%), edged lower.
CMC (up 0.03%), HCL Technologies (up 0.24%), Tech Mahindra (up 1.04%) and Persistent Systems (up 1.15%), edged higher.
The BSE IT index was down 1.33% at 11,367.49. It underperformed the Sensex, which was down 0.27% at 27,005.48.
The BSE IT index had underperformed the market over the past one month till 9 October 2015, rising 4.15% compared with 5.29% rise in the Sensex. The index had, however, outperformed the market in past one quarter, rising 12.95% as against Sensex's 1.79% decline.
IT major Infosys lowered its full year revenue growth guidance in dollar terms for the year ending 31 March 2016 (FY 2016) at the time of announcement of Q2 September 2015 results. Infosys now expects its revenue to grow 6.4%-8.4% in dollar terms for FY 2016. At the time of announcing Q1 June 2015 results, Infosys had forecast revenue growth of 7.2%-9.2% in dollar terms for FY 2016.
The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
Thanks to weakness of the rupee against the dollar, Infosys has raised full year revenue growth guidance in rupee terms. Infosys now expects its revenue to grow 13.1%-15.1% in rupee terms in FY 2016. At the time of announcing Q1 June 2015 results, Infosys had forecast 11.5%-13.5% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 65.59.
Infosys' consolidated net profit rose 12.1% to Rs 3398 crore on 8.9% growth in revenue to Rs 15635 crore in Q2 September 2015 over Q1 June 2015. The results are as per International Financial Reporting Standards (IFRS). The result was announced during market hours today, 12 October 2015.
Investors feared that more IT companies could come up with weak guidance this earnings season.
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