IT stocks tumble after Accenture lowers guidance; HCL Tech, Wipro, TCS, Infosys fall up to 6%
The BSE IT index declined nearly 2% today, led by index heavyweights HCL Technologies, Wipro, Infosys, TCS, and Tech Mahindra.
The BSE IT index declined nearly 2% today, led by index heavyweights HCL Technologies, Wipro, Infosys, TCS, and Tech Mahindra.
The bankex index dropped over 4%, with index heavyweights HDFC Bank, Kotak Mahindra Bank, Axis Bank falling between 3-8%.
The cumulative m-cap of BSE-listed companies surge over ₹27 lakh cr in December to ₹366 lakh cr as of December 27.
In the first two weeks of December, the BSE benchmark Sensex has rallied 4,617 points, with FIIs injecting over ₹3,900 crore daily on an average this month.
The BSE Sensex rallied as much as 955 points to hit a fresh record high of 70,540; the NSE Nifty climbed 263 points to touch a new all-time high of 21,189.
Post Q2 results, the U.S.-listed shares of Infosys plunged 6.5% to $16.46 in overnight trade on NYSE after the IT heavyweight cut revenue guidance for the second in a row.
U.S.-based Accenture gave a bleak revenue growth guidance of 2-5% year-on-year in constant currency terms for the financial year 2023-24 (FY24).
In June this year, Infosys signed a deal to acquire Danske Bank’s IT centre in India, where over 1,400 professionals are employed.
The sell-off in the equity market was triggered by weakness in index heavyweights such as Infosys, TCS, HCL Technologies, RIL, and HUL as well as bearish global cues.
Brokerages have turned bearish on the stock after the IT heavyweight reported lower than expected earning in the June quarter.