Shares of ten IT firms fell by 0.38% to 5.07% at 13:42 IST on BSE after a foreign brokerage downgraded its rating on Infosys, Tech Mahindra and MindTree.
Hexaware Technologies (down 5.07%), Tech Mahindra (down 4.97%), Infosys (down 4.76%), MindTree (down 3.71%), Wipro (down 3.05%), TCS (down 2.39%), HCL Technologies (down 2.34%), MphasiS (down 1.89%), CMC (down 1.09%) and Oracle Financial Services Software (down 0.38%), edged lower.
The S&P BSE IT index was down 3.38% at 10,441.11. It underperformed the Sensex, which was down 0.25% at 26,206.50.
The S&P BSE IT index had outperformed the market over the past one month till 7 October 2014, rising 3.86% compared with 2.79% fall in the Sensex. The index had also outperformed the market in past one quarter, rising 13.09% as against Sensex's 0.66% rise.
The foreign brokerage downgraded its rating on Infosys to "neutral" from "buy." It said the stock trades at around 17x 1-year forward earnings after outperforming the market and added that positives in the stock are adequately discounted.
Infosys will declare its Q2 September 2014 results on Friday, 10 October 2014.
The brokerage also cut its rating on Tech Mahindra to "sell" from "neutral".
MindTree was downgraded to "sell" from "buy".
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