Nifty IT index down nearly 3% on Infosys weak guidance

Infosys, TCS and HCL Tech were down more than 2% on the NSE

Shares of information technology (IT) companies were under pressure with the Nifty IT index down nearly 3% after Infosys said that the revenue is expected to grow 6.5%-8.5% in constant currency terms and 6.1%-8.1% in dollar terms for the year ending March 31, 2018 (FY18).

For the recently concluded financial year 2016-17 (FY17), Infosys had reported revenues growth of 8.3% in constant currency terms and 7.4% in dollar terms on year on year basis.

At 3:00 pm; Nifty IT index, the largest loser among sectoral indices, was down 2.7% as compared to 0.54% decline in the Nifty 50 index.

Infosys, Tata Consultancy Services (TCS) and HCL Technologies were down more than 2% each, while Tech Mahindra, Wipro and KPIT Technologies down in the range of 1%-2% on the NSE.

Infosys dipped 4% to Rs 930, falling 6% from its intra-day high of Rs 990 touched in early morning trade. The stock hit intra-day low of Rs 927 so far.

“The overall outlook for the IT sector is negative for FY18. If you look at Nasdaq, it has been making fresh highs, but Indian IT companies have been underperforming the markets. It tells the story in itself that IT companies are struggling to cope up with global business environment. Most fund managers are underweight on the IT sector,” said SAURABH JAIN, Head-Fundamental Research at SMC Global Securities in interview. CLICK HERE FOR FULL INTERVIEW

COMPANY	LATEST	PREV CLOSE	LOSS(%)
INFOSYS	929.40	968.85	-4.07
HCL TECHNOLOGIES	807.05	831.65	-2.96
TCS	2325.65	2393.25	-2.82
TECH MAHINDRA	429.80	437.65	-1.79
WIPRO	493.15	500.75	-1.52
KPIT TECH.	129.20	131.05	-1.41
MINDTREE	442.10	448.05	-1.33
TATA ELXSI	1536.00	1554.20	-1.17