Prices of most IT companies fell on Thursday after the Bengaluru-headquarterd Infosys announced a revenue guidance for FY18 that disappointed investors. Infosys was the biggest loser in the IT pack and the stock dipped 3.86% closing the session at Rs 931.40 on BSE. It hit a level of Rs 927 in intra-day trades. The IT major reported a near 3% sequential drop in consolidated net profits at Rs 3,603 crore for the quarter ended March 31.
With prices of several other tech stocks coming off, the S&P BSE IT index slumped by 2.73 % by ending at 9731.01. TCS, HCL, Hexaware Technologies, Tech Mahindra, KPIT, Mindtree, D-Link, Wipro and Tata ELXI were among the other losers.
The price of these stocks fell anywhere between 3.86% and 0.96%. Hinduja Global Solutions, Infinite Computer Solutions, Nelco, Intrasoft Technologies, Zen Technologies and Rolta India were among the losers whose stock prices dropped between 0.93 and 0.75% on Thursday.
“A weak start to Q4 result season led by IT heavyweight and disruptive global market dragged down the domestic market. Going ahead the performance of Q4 earnings will define the trend of the market,” Vinod Nair, head of research, Geojit Financial Services.
In a note, Emkay Research wrote the March quarter results missed expectations. “The company expects 6.5-8.5% constant currency growth for FY18 which means acceleration through the next four quarters as compared to a modest 1.3% CQGR through FY17, “ the brokerage observed.
It added that additional qualitative commentary suggests that Infosys has still not seen actual pickup in spending from US BFS clients yet though the expectations stays on this count given the improved sentiment.