Tata Consultancy Services (TCS) today slumped to its 52-week low level and closed 2 per cent down on the bourses after the IT major's third quarter earnings missed the market estimates.
The stock opened on a weak note at Rs 2,317 and tanked 2.84 per cent to its intra-day low of Rs 2,258 on the BSE, its 52-week low level.
At the end of today's trading session, the stock was quoted at Rs 2,280.30, down 1.88 per cent on the BSE.
The stock has lost 3.90 per cent in the last three trading sessions. Following this, the market capitalisation of the company declined by Rs 15,480.32 crore since January 8.
At the end of today's trading, the market valuation of the company stood at Rs 4,49,316.68 crore on BSE.
On NSE, the stock opened at Rs 2,317 and closed at Rs 2,279.20, down 2.05 per cent. During the day, the stock had slumped to its 52-week low level of Rs 2,255.10.
The country's largest software exporter TCS yesterday reported a 14.2 per cent jump in profit to Rs 6,083 crore for the third quarter of the current fiscal.
Its revenues were up 11.7 per cent to Rs 27,364 crore in the third quarter of 2015-16, from Rs 24,501 crore in the corresponding period of 2014-15.
Brokers said the downfall in the counter was largely because the third quarter earnings missed the market estimates.
"TCS numbers have been lower than expected for its third quarter results, mainly on the top line," Angel Broking said in a research note adding that "on stock perspective, the stock has witnessed a strong under performance among its peers."
The Mumbai-based firm had earlier said that floods in Chennai are expected to have a "material impact" on its December quarter revenues.
Chennai is one of TCS' largest delivery locations with over 65,000 employees.
The third quarter of the financial year is traditionally weaker for IT firms as business is impacted by low volume growth amid Christmas and New Year holidays and furloughs in the US and Europe.
