As trouble deepens in the US economy, analysts expect further sell-off in IT counters. As for Tata Consultancy Services (TCS), its last hedge position at $2.9 billion is probably the highest by any IT company, which could deny the company any significant benefit from rupee's depreciation against the dollar (7 per cent in the June quarter).
The company's margin is also expected to be under pressure on account of wage hikes and visa costs during Q1 FY09. With a large contribution from BFSI vertical in the US, TCS seems to be most vulnerable to the current volatile macro-economic conditions.
