TCS shares fall on weak January-March outlook

MUMBAI (Reuters) - Tata Consultancy Services (TCS) shares fell as much as 3.2 percent after India's biggest software services exporter said on Thursday that fourth-quarter revenue is expected to be in line with last year trend.

TCS reported a 1.9 percent sequential revenue growth in U.S. dollar terms for the fourth quarter of 2013-14 which would put the January-March quarter growth at below current estimates, analysts said.

"Overall, Q4 is likely to be another soft quarter from TCS, and with expectations already high, we see downside risks to earnings," Religare said in a note.

The broker downgraded the stock to "hold" from "buy".

 

The stock closed 1.8 percent lower.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)