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IT stocks decline on profit booking

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Capital Market
Last Updated : Jan 14 2014 | 11:55 PM IST

Seven IT stocks fell 0.08% to 2.44% at 12:25 IST on BSE, with the stocks halting recent gains triggered by Infosys raising its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014.

Polaris Financial Technology (down 1.08%), Oracle Financial Services Software (down 0.08%) and MphasiS (down 2.44%) declined.

TCS lost 1.62% to Rs 2,332, with the stock reversing direction after hitting a record high of Rs 2,384.20 in intraday trade.

HCL Technologies declined 1.47% to Rs 1,325. The stock had hit a record high of Rs 1,352 in intraday trade on Monday, 13 January 2014.

Wipro fell 1.24% to Rs 554.45. The stock had hit a 52-week high of Rs 567.45 in intraday trade on Monday, 13 January 2014.

Infosys slipped 0.25% to Rs 3,656.65. The stock had hit a record high of Rs 3,674.40 in intraday trade on Monday, 13 January 2014.

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Tech Mahindra rose 0.28% to Rs 1,890.70 after hitting a 52-week high of Rs 1,906 in intraday trade today, 14 January 2014.

The S&P BSE IT index was down 0.85% at 9,503.45 and was the second biggest loser among the sectoral indices on BSE. The index underperformed the S&P BSE Sensex, which was down 0.28% at 21,074.55.

The BSE IT index had outperformed the market over the past one month till 13 January 2014, rising 12.02% compared with the Sensex's 2.02% rise. The index also outperformed the market in past one quarter, gaining 12.58% as against Sensex's 2.95% rise.

IT stocks edged higher recently after Infosys at the time of announcing Q3 results on Friday, 10 January 2014 raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 (FY 2014).

Infosys had gained 6.22% in two trading days to Rs 3665.70 on 13 January 2014 from Rs 3451.05 on 9 January 2014.

TCS had advanced 5.64% in two trading days to Rs 2370.30 on 13 January 2014 from Rs 2243.65 on 9 January 2014.

Wipro had gained 3.82% in two trading days to Rs 561.45 on 13 January 2014 from Rs 540.75 on 9 January 2014.

Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results were as per International Financial Reporting Standards (IFRS). The strong sequential growth in the company's bottom line was due to base effect - Infosys' bottom line in Q2 September 2013 was hit adversely due to a provision of Rs 219 crore during that quarter for one-off visa costs. A sharp surge in non-operating income also aided the growth in bottom line. Non-operating income jumped 43.3% to Rs 731 crore in Q3 December 2013 over Q2 September 2013.

Infosys raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.

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First Published: Jan 14 2014 | 12:25 PM IST

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