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IT index plunges 4% as Cognizant lowers its 2012 guidance

TCS, HCL Technologies, Infosys and Wipro are trading lower by 4-5%

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SI Reporter Mumbai
Last Updated : Jan 21 2013 | 4:10 AM IST

Share of information technology (IT) companies are under pressure in morning trades with the sector index plunging almost 4% after IT services company Cognizant Technology Solutions Corp revised its 2012 guidance downwards by nearly $200 million (around Rs 1,066 crore today), due to a slower than anticipated acceleration in demand.

TCS, HCL Technologies, Infosys and Wipro are trading lower by 4-5%, compared to a marginal fall in the benchmark index Sensex. The IT index, the largest loser among the sectoral indices is down 4% or 213 points.

“The Nasdaq-listed company said in calendar year 2012, it was expecting its revenues to be $7.34 billion (Rs 39,562.6 crore), 20% growth over 2011. At the end of December 2011, the company had projected its full-year revenues to grow at least 23% y-o-y to close at $7.53 billion (Rs 40,586.7 crore),” the report suggests.

 

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