IT cos shares fall on heavy sell-offs over US economy concerns
Driven by heavy sell-offs amid anxiety over the US economy's health, shares of IT companies today fell further on the bourses with sector heavyweights, TCS and Infosys leading the list of losers.
Shares of TCS settled 4.16 per cent lower at Rs 967.25 on the BSE. During the day the stock shed 6 per cent. Investors also flee from other IT blue-chips, like Infosys and Wipro.
Infosys plunged 3.68 per cent to close at Rs 2,377.10, while Wipro's stock went down by 3.18 per cent to end at Rs 347.25.
Infosys slipped to its one-year low level of Rs 2,350 during the day.
"IT counters witnessed heavy selling for yet another day. Fear of US recession hurting IT companies' revenues, negated the sentiments on these counters," Bonanza Portfolio Senior Research analyst Shanu Goel said.
Widespread selling was witnessed at the counter of other IT companies as well, with Patni Computer tumbling 5.12 per cent and HCL Tech by 1.89 per cent.
Mirroring weakness in these stocks, the BSE IT index ended the day at 5,041.44, down 3.47 per cent. During the day, the index went down to hit its 52-week low of 4,978.85.
Analysts also said that stocks of export-focused sectors were among the worst affected, as the US and Europe are the main overseas buyers of Indian goods.
The BSE Sensex ended down by 132.27 points at 16,857.91.
The bellwether index oscillated between a days' high of 17,135.04 and a low of 16,432.
With today's 132-point loss, the Sensex has lost a total of 1,454 points in past six trading sessions.
The global markets have been in a bad shape for past two days, after the creditworthiness of the US was downgraded by Standard and Poor's amid the American economy's mounting debt worries.