IT stocks under pressure, BSE IT index down 2.15 per cent

Information Technology stocks remained under pressure, courtesy not so great Q3 numbers reported by IT sector biggies TCS and Infosys. BSE IT Index was trading down by close to two per cent.

TCS, nation’s largest IT services provider, reported a largely in line set of Q3 numbers. Profit increased 2.9 per cent sequentially to Rs 6,778 crore, led by the strong digital business and great execution capabilities. The company also touched USD 1 billion-mark in profit for the first time in a quarter.

The revenue during the quarter in review increased 1.5 per cent to Rs 29,735 crore and dollar revenue growth was 0.3 per cent at Rs 4,387 crore compared with previous quarter. The constant currency growth for the quarter was at 2 per cent with one per cent volume growth achieved on a sequential basis.

The second largest IT company Infosys delivered a mix set of numbers with profit rising 2.8 per cent q-o-q to Rs 3708 crore. Its revenue declined 0.2 per cent for the quarter undern review. The Infy management also reduced its revenue guidance for FY17.

The upcoming results of other IT companies would be watched closely to ascertain the overall IT results.

At the time of writing this report, the stocks of Infosys, TCS, Wipro, Tech Mahindra were trading down in the range of 0.21 to 3.4 per cent.