 "Information technology shares under pressure; KPIT, MindTree down 5%")
Shares of information technology (IT) shares are under pressure, declining by up to 7% each in an otherwise firm market.
KPIT Technologies and MindTree were down 5% each, while HCL Technologies, Wipro, Tech Mahindra, Persistent Systems, Accelya Kale Solutions, Zensar Technologies, Sonata Software, Geometric and NIIT Technologies were down 1%-3% on the Bombay Stock Exchange (BSE).
At 1320 hours, the S&P BSE IT index was down 0.54% at 10,622 points compared to a 0.53% rise in the S&P BSE Sensex at 27,877.
The IT index touched a low of 10,581 in intra-day trades today, declining by 250 points in the past three trading sessions from 10,831 on June 22.
Persistent Systems has dipped 3% to Rs 610, extending its previous day’s 13% fall on the BSE, after the company said that the revenue growth in dollar terms is expected to be marginally lower in the current quarter (April-June 2015), due to weakness in the product engineering business coupled with the quarterly variability associated with the company’s IP business.
“Some of the pre-cloud / pre-internet software product companies, who are our customers, are re-organizing their businesses and changing their priorities,” Persistent Systems said in business update for Q1 FY16.
Consequently, weakness in our current product engineering business coupled with the quarterly variability associated with the company’s IP business could result in marginally lower USD revenue for this quarter as compared to the previous quarter, the company added.
KPIT Technologies dipped 14% to Rs 85, also its 52-week low on the BSE in early morning trades on the back of heavy volumes. Currently, the stock is trading lower by 7% at Rs 91.85 and has seen a combined 12.44 million shares representing 6.3% of the total equity changing hands on the counter on the BSE and NSE. According to media reports, there are rumours on the social media and financial websites that promoters are selling stake and may cancel dividend.
The BSE has sought clarification from KPIT Technologies Ltd with reference to the news that appeared on Moneycontrol (June 25, 2015) and the reply is still awaited.
KPIT Technologies and MindTree were down 5% each, while HCL Technologies, Wipro, Tech Mahindra, Persistent Systems, Accelya Kale Solutions, Zensar Technologies, Sonata Software, Geometric and NIIT Technologies were down 1%-3% on the Bombay Stock Exchange (BSE).
At 1320 hours, the S&P BSE IT index was down 0.54% at 10,622 points compared to a 0.53% rise in the S&P BSE Sensex at 27,877.
The IT index touched a low of 10,581 in intra-day trades today, declining by 250 points in the past three trading sessions from 10,831 on June 22.
Persistent Systems has dipped 3% to Rs 610, extending its previous day’s 13% fall on the BSE, after the company said that the revenue growth in dollar terms is expected to be marginally lower in the current quarter (April-June 2015), due to weakness in the product engineering business coupled with the quarterly variability associated with the company’s IP business.
“Some of the pre-cloud / pre-internet software product companies, who are our customers, are re-organizing their businesses and changing their priorities,” Persistent Systems said in business update for Q1 FY16.
Consequently, weakness in our current product engineering business coupled with the quarterly variability associated with the company’s IP business could result in marginally lower USD revenue for this quarter as compared to the previous quarter, the company added.
KPIT Technologies dipped 14% to Rs 85, also its 52-week low on the BSE in early morning trades on the back of heavy volumes. Currently, the stock is trading lower by 7% at Rs 91.85 and has seen a combined 12.44 million shares representing 6.3% of the total equity changing hands on the counter on the BSE and NSE. According to media reports, there are rumours on the social media and financial websites that promoters are selling stake and may cancel dividend.
The BSE has sought clarification from KPIT Technologies Ltd with reference to the news that appeared on Moneycontrol (June 25, 2015) and the reply is still awaited.