TCS sounds an alarm, drives IT sector down

With Sensex inching towards its all-time high, here is the news which can dampen its dream. Information Technology giant, Tata Consulting Services may see a sequential loss of momentum in Banking Financial Services and Insurance (BFSI), business in United States. For the further updates, company will inform investors on business trends in Q2FY17.

Shares of the company saw a sharp reaction falling by 5.81 per cent on September 8. On the other hand, shares of major IT giants opened in red; as at 9.17 am Infosys is down by 2 per cent, HCL Tech is down by 3 per cent, Tech Mahindra is down by 2.21 percent, Wipro is down by over 2 per cent and has hit its 52 week low. The BSE S&P IT index has fallen by 260 points.

TCS, has certainly pressed the warning bell, and the scrip of the company is 10 per cent away from its 52 week low and is currently trading at its 6-month low. Quarter 2 of the company will be decisive and will give investors further clarity. Meanwhile, Sensex is marginally up by 0.12 points, and TCS has certainly dampened the bull run of the Sensex. TCS and Infosys have dragged the markets down by 30 points.