IT Shares Tumble After Cognizant Cuts Growth Outlook; TCS Falls by 3.70 Percent
TCS fell 3.70 per cent, Hexaware Technologies 2.73 per cent, Tech Mahindra 2.16 per cent, HCL Tech 1.40 per cent, Wipro 0.87 per cent and Infosys Ltd 0.84 per cent.
Representative image (Reuters)
New Delhi: Shares of IT companies tumbled up to 3.7 per cent Friday after Cognizant reported over 15 per cent drop in net income for the quarter ended March, and slashed its full-year revenue growth outlook.
On the BSE, TCS fell 3.70 per cent, Hexaware Technologies 2.73 per cent, Tech Mahindra 2.16 per cent, HCL Tech 1.40 per cent, Wipro 0.87 per cent and Infosys Ltd 0.84 per cent.
TCS was the worst hit among the BSE 30-share pack.
Led by the decline in these scrips, the BSE Information Technology index fell 1.91 per cent to close at 15,659.96.
The US-headquartered company, which has a significant portion of its employees based in India, revised its full-year 2019 revenue growth outlook to 3.6-5.1 per cent in constant currency, significantly less than 7-9 per cent projected just months ago.
The company follows January-December as financial year.
It cited "first quarter underperformance" and likelihood of slower growth in financial services and healthcare as reasons for the massive cut in full-year outlook.
Shares of Cognizant, however, are not listed on India bourses.
A strengthening rupee also weighed on the IT counters.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Recommended For You
- From Slam Poets to 'Eco-Feminists', BBC's 100 Most Influential Women 2019 List Has 7 Indians
- Hina Khan Slams People for Comparing Her and New 'Komolika' Aamna Sharif as Ekta Kapoor Weighs In
- FASTag Will Soon be Mandatory For Your Car: This is How The Digital Payment Tag Works
- Xiaomi Mi Air Purifier 2C at Rs 6499 Lands Ahead of Peak Pollution Season
- Mercedes-Benz G 350 d Launched at Rs 1.5 Crore in India