IT shares trade weak; TCS, Infosys down over 2%

TCS, Infosys and Tech Mahindra had rallied between 10% and 14% in 14 trading sessions till Tuesday

Shares of information technology (IT) stocks were trading weak with the sector majors Tata Consultancy Services (TCS) and Infosys were down 2% each on the National Stock Exchange (NSE) on profit booking.

At 2:26 pm; the Nifty IT index, the largest loser among sectoral indices, was down 1.3% as compared to 0.2% decline in the Nifty 50 index.

Since February 1, 2017, IT index had outperformed the market by surging 9.5% against 2.2% rise in the benchmark index till Tuesday. TCS, Infosys Tech Mahindra and Oracle Financial Services had rallied between 10% and 14% during the period.

Among the individual stocks, Infosys was down 2% at Rs 992, after hitting intra-day low of Rs 987 on the NSE in the wake of ongoing controversy over the whistle blower's complaints against the company surrounding its Panaya acquisition.

Infosys issued clarification on the status of the whistle blower complaints received by the company as reported in certain sections of the media.

This whistle blower's complaint has been placed before the audit committee as is the normal practice, in accordance with the company's Whistle Blower Policy, and the audit committee is taking steps to initiate an investigation into the allegations made, Infosys said in a regulatory filing.

TCS was down 2% at Rs 2,407, extending its previous day’s 1.5% decline. Earlier this week, IT services major TCS announced an Rs 16,000-crore share buyback - biggest in the Indian capital market, as it looks to return surplus cash to shareholders.

Company	01/02/2017	21/02/2017	% chg	LTP	% chg
TCS	2167.90	2465.35	13.7	2410.45	-2.2
Infosys	916.75	1013.60	10.6	991.50	-2.2
Mindtree	459.85	474.40	3.2	467.05	-1.5
KPIT Tech.	130.60	134.85	3.3	133.25	-1.2
Tata Elxsi	1450.30	1496.75	3.2	1482.85	-0.9
HCL Technologies	813.95	851.30	4.6	843.75	-0.9
Oracle Fin.Serv.	3311.65	3656.65	10.4	3643.65	-0.4
Wipro	456.00	475.80	4.3	475.65	0.0
Tech Mahindra	449.70	507.90	12.9	508.35	0.1
Nifty 50	8716.40	8907.85	2.2	8919.95	0.1
Nifty IT Index	9750.00	10680.75	9.5	10541.15	-1.3
LTP : Last traded price on NSE in Rs at 02:26 pm