IT sector takes a hit on Brexit from EU; shares plunge

By: | Updated: June 24, 2016 4:00 PM

IT majors such as Tata Consultancy Services, Infosys, Mindtree, eClerx Services and Tech Mahindra were trading lower on Friday after Britain decided to leave European Union in a referendum.

IT STOCKS BREXITIT majors such as Tata Consultancy Services, Infosys, Mindtree, eClerx Services and Tech Mahindra were trading lower on Friday after Britain decided to leave European Union in a referendum. (Reuters)

IT majors such as Tata Consultancy Services, Infosys, Mindtree, eClerx Services and Tech Mahindra were trading lower on Friday after Britain decided to leave European Union in a referendum.

According to a industry body Nasscom, Britain’s exit from the European Union will mark a phase of uncertainty for the $108-billion Indian IT sector in the near-term. The BSE IT index plunged as much as 4 per cent on Friday.

Read more: 5 reasons why Sensex tanked over 1,000 points intraday on Friday

In the late afternoon trade, IT major Infosys was trading 1.28 per cent down at Rs 1196 (at 3.11 pm). Brexit is “negative” for the Indian IT industry in the short, and medium-term, former CEO and managing director of software major Infosys S Gopalakrishnan said on Friday.

Tech Mahindra was trading 4.46 per cent down at Rs 508.30 at the same time. Vineet Nayyar, executive vice-chairman, Tech Mahindra in an interview with CNBC-TV18 said, “There will be a marginal effect of Brexit on the company’s profit and we do not see any significant impact.” He added that UK economy is strong and will overcome this minor fluctuation.

Other IT companies TCS, Mindtree and eClerx were trading lower by 2.81 per cent, 0.19 per cent and 0.54 per cent, respectively.

(With agency inputs)

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