 "Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters")
Shares of information technology (IT) companies were trading lower for third straight trading sessions on concerns of weaker earnings growth for July-September quarter (Q2FY17).
HCL Technologies, Tata Consultancy Services (TCS), Infosys, Tata Elxsi and KPIT Technologies were down between 1% and 3% on the National Stock Exchange (NSE).
At 01:41 pm, the Nifty IT index, the largest loser among sectoral indices, was down 0.82%, as compared to 0.16% decline in the Nifty 50 index. IT index underperformed the market by falling 2.3% in past three trading sessions against 1% down in the benchmark index.
Infosys was down 1.2% to Rs 1,015 in intra-day deal, trading close to its 52-week low of Rs 1,009 touched on June 3, 2016.
Infosys today said it will announce the results for its second quarter ended September 30, 2016 on Friday, October 14, 2016 around 8.45 a.m.
TCS has informed the exchange that a meeting of board of directors of the company is scheduled to be held on October 13, 2016, to approve Q2FY17 results and declaration of a second interim dividend.
In past three-months, the Nifty IT index was down 7% against 4% rise in the Nifty 50 index.
“The underperformance has been the result of expectation of slower growth for FY17 as the sector continues to face headwinds from muted global macro, BREXIT and transition of existing business to new technologies. Given the upcoming US elections, we do not expect the underperformance to reverse in a hurry,” according to IDBI Capital Markets & Securities.
“We estimate the top?4 IT players, TCS, Infosys, Wipro and HCL Technologies, to clock 0.6?4.0% quarter on quarter (QoQ) constant currency revenue growth in Q2FY17,” according to Edelweiss Securities.
“Q2 has been a seasonally strong quarter, but this time round the 8.5% QoQ depreciation of GBP against USD will lead to negative cross currency impact, depending on exposure of the respective companies to GBP. We expect cross currency headwind on revenue to be 50?90 basis points (bps),” the brokerage firm said in a result preview.
HCL Technologies, Tata Consultancy Services (TCS), Infosys, Tata Elxsi and KPIT Technologies were down between 1% and 3% on the National Stock Exchange (NSE).
At 01:41 pm, the Nifty IT index, the largest loser among sectoral indices, was down 0.82%, as compared to 0.16% decline in the Nifty 50 index. IT index underperformed the market by falling 2.3% in past three trading sessions against 1% down in the benchmark index.
Infosys was down 1.2% to Rs 1,015 in intra-day deal, trading close to its 52-week low of Rs 1,009 touched on June 3, 2016.
Infosys today said it will announce the results for its second quarter ended September 30, 2016 on Friday, October 14, 2016 around 8.45 a.m.
TCS has informed the exchange that a meeting of board of directors of the company is scheduled to be held on October 13, 2016, to approve Q2FY17 results and declaration of a second interim dividend.
In past three-months, the Nifty IT index was down 7% against 4% rise in the Nifty 50 index.
“The underperformance has been the result of expectation of slower growth for FY17 as the sector continues to face headwinds from muted global macro, BREXIT and transition of existing business to new technologies. Given the upcoming US elections, we do not expect the underperformance to reverse in a hurry,” according to IDBI Capital Markets & Securities.
“We estimate the top?4 IT players, TCS, Infosys, Wipro and HCL Technologies, to clock 0.6?4.0% quarter on quarter (QoQ) constant currency revenue growth in Q2FY17,” according to Edelweiss Securities.
“Q2 has been a seasonally strong quarter, but this time round the 8.5% QoQ depreciation of GBP against USD will lead to negative cross currency impact, depending on exposure of the respective companies to GBP. We expect cross currency headwind on revenue to be 50?90 basis points (bps),” the brokerage firm said in a result preview.
