TCS tumbles and drags down to Wipro, Infosys, Tech Mahindra and LTTS with poor earnings
- TCS was the biggest loser on Nifty 50 dragging the indices down with nearly 5% fall followed by other IT peers.
- Investors feared possible recession in the US after the IT giant reported poor earnings in the last three months.
- Further, the market participants will keep an eye for similar trends in results of other IT companies.
TCS shares were the biggest losers on Nifty 50, as its stock went down by around 4.47% in early morning trade. This only hardens the fears of a possible recession in the US which will lead to a slowdown in the domestic IT majors.
The stock of Wipro went down by 3%, HCL Tech by 2.62% and Tech Mahidra too went down by 2.28%.
However, even Infosys’ stock which is the mutual fund darling too went down by 2.49%, even though it has been rated as the best of the worst by many analysts.
“We anticipate Infosys to lead on the organic revenue front with growth of 4.3% on quarter in constant currency. Growth in TechM, Wipro and HCL is expected to be soft due to seasonal weakness and moderation in demand,” said a report by ICICI Securities, in an earnings preview.
|IT companies||Share price as of 10:10 a.m.|
|Larsen & Toubro Infotech||-3.21%|
|L&T Technology Services||-2.53%|
The company said that it was a challenging quarter from a cost management perspective as it impacted their operating margin.
Moreover, the fact that the firm is cautious of global uncertainties also worried investors. CEO and MD Rajesh Gopinathan said, “Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties."
In addition, TCS’s attrition also continued to rise as the issue of number of employees leaving IT firms still persists. Its attrition rate has gone up to 19.7% from 17.4% last quarter.
$TCS.NSE A major Pattern Break has been seen in TCS. Here are some ideas on what you should do! -> For Traders - Price is in official downtrend as its is making LH LL, Below 50 bands and 200 MA. Its Previous Swing low is at 3000 Round Number so any pullback to the structure in intraday chart is a sell on rise till 3000 level. -> For Investors - This is not the Right time for Investors to kick in because TCS is the market leader of IT sector in terms of Price and you must consider that it will be available on discounted and corrected Price. The management of the company is same, the product, the environment is the same & but it is not the best time to do some investment in the Stock . Here, what you can see is that stock is bearish on the medium term trend & not in the interest zone for Investors.— (@Tradingmonks) July 11, 2022
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