IT stocks drop 2-4% over pricing pressure

Dismay spread amongst investors as IT giant Infosys informed a leading news portal that the IT industry is under pressure to cut its prices by 20-30 per cent. The price cut is expected to result in a drastic reduction of profitability of the companies.

The IT stocks dropped 2 to 4 per cent in intra-day trade on Wednesday, June 7, 2017. Wipro dipped the most, falling over 4 per cent, whereas TCS fell by 3.91 per cent, Infosys by 3.42 per cent and HCL Technologies by 2.69 per cent.

However, the IT stocks had risen by 2 to 4 per cent intra-day on June 6, 2017, with TCS leading the lot. Moreover, the IT stocks had driven Nifty to touch its 9,700 level on Tuesday.