Ten IT shares fell by 0.05% to 8.79% at 12:02 IST on BSE after IT major Infosys trimmed its revenue growth guidance for the year ending 31 March 2017.
Tech Mahindra (down 2.54%), MindTree (down 1.49%), Hexaware Technologies (down 1.39%), Wipro (down 1.27%), Persistent Systems (down 1.1%), HCL Technologies (down 0.97%), Oracle Financial Services Software (down 0.6%) and MphasiS (down 0.05%), edged lower. CMC was up 0.03%.
The BSE IT index was down 5.12% at 10,633.69. It underperformed the S&P BSE Sensex, which was down 0.51% at 27,799.26.
The BSE IT index had underperformed the market over the past one month till 14 July 2016, falling 0.13% compared with 5.86% rise in the Sensex. The index had also underperformed the market in past one quarter, falling 0.67% as against Sensex's 9.03% rise.
Shares of IT major Infosys fell 8.79% to Rs 1,072.50 after the company pared its revenue growth for the year ending 31 March 2017 (FY 2017) at the time of announcement of its Q1 June 2016 results today, 15 July 2016. In constant currency terms, the company has forecast 10.5%-12% growth in revenue for FY 2017. At the time of announcement of Q4 March 2016 and FY 2016 results, the company had forecast 11.5%-13.5% growth in revenue for FY 2017 in constant currency terms.
On a consolidated basis, Infosys' net profit fell 4.5% to Rs 3436 crore on 1.4% growth in revenue to Rs 16,782 crore in Q1 June 2016 over Q4 March 2016. The results are as per International Financial Reporting Standards (IFRS).
Another IT major TCS lost 3.01% to Rs 2,444.55 after consolidated net profit fell 0.4% to Rs 6317 crore on 3% rise in revenue to Rs 29305 crore in Q1 June 2016 over Q4 March 2016. Operating income fell 0.9% to Rs 7347 crore in Q1 June 2016 over Q4 March 2016. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 14 July 2016.
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