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IT stocks under pressure: TCS slips over 3% on weak Jan-March outlook
NEW DELHI: Tata Consultancy Services Ltd slipped as much as 3.1 per cent in trade on Monday, after the IT major said that its revenue for the ongoing quarter will be in line with that in the previous year.
The IT major expects revenue to shrink in its energy segment as its clients grapple with the low price of oil, TCS said in an investor concall.
At 09:40 a.m.; TCS was trading 2.3 per cent lower at Rs 2634. It hit a low of Rs 2611.80 and a high of Rs 2642 in trade today.
Infosys BSE -1.97 % also slipped over 2 per cent, while Wipro was down 1.1 per cent to Rs 660.
Falling oil prices have led drillers and oil services companies to clamp down on their spending, hurting Indian IT providers. Infosys and Wipro have also flagged weakness in the energy sectors, ET reported.
The third and fourth quarters of the fiscal are typically weaker than the quarters in the first half of the year. Earlier this week, Praveen Rao, chief operating officer of Infosys, had raised concerns over revenue growth in energy sector, added the report.
Wipro has also said it expects slow growth in its energy business in the next two-three quarters.
