IT stocks under pressure; BSE IT index down on weak Q2 results

Information Technology stocks remained under pressure courtesy weak Q2 numbers reported by biggies TCS and Infosys back to back. BSE IT Index was trading down by half a per cent.

All most all the IT stocks were trading under pressure for second straight day on the back of weak second quarter numbers. Shares of IT companies have been reeling under pressure ever since there Q1 numbers and subsequent effect of BREXIT.

Large- cap IT names like TCS, Infosys have reported weak numbers that has led to decline in investor wealth massively. As expected these companies have reported poor results and in turn cut down on revenue guidance for the full fiscal year.

According R Chandrashekhar, President, NASSCOM ‘Currency impact seems to have bottomed out and slowdown in BFSI may impact next few quarters too. However, IT sector does not look negative and it may see short-term impact of BREXIT and political uncertainties.

Next results would be watched closely as to ascertain if it has been affecting all the other companies too and how much more pain is to be felt by them.

At the time of writing of this report, stocks of Infosys, TCS, Wipro, Tech Mahindra were trading down in the range of 0.1 to 2 per cent.