IT stocks extend losses; Infosys, Tech Mahindra, HCL Tech slip
Shares of IT companies extended their losses for a third straight session on Monday tracking firm movement of the rupee against the US dollar.
The Nifty IT index was trading 1.15 per cent down at 10,580.35 around 11.45 am (IST).
Among the 10-components in the index, 6 were trading in red with heavyweight Wipro falling the most at 1.81 per cent, followed by Tech Mahindra (down 1.67 percent), HCL Technologies (down 1.40 per cent), Infosys (down 1.37 per cent), TCS (down 0.67 per cent) and OFSS (down 0.04 per cent).
However, Mindtree and KPIT were up 0.12 per cent and 0.15 per cent, respectively.
Shares of Infosys declined after fresh row erupted between the founders and the Board of the company over the pay hike to chief operating officer U B Pravin Rao.
Infosys founder N R Narayana Murthy on Sunday said that the compensation hike to Rao approved by the board in February was not “proper” and “will likely erode the trust and faith of the employees in the management and the board”.
In a chat with ET Now, Anil Singhvi, Founder & Chairman, Ican Investment Advisors said, “Murthy is making a mountain out of mole. If we compare the hike in salary of Praveen Rao with the industry peers, it is not very high. So, I do not think he is making any valid point.”
For the quarter ended March 31, 2017, the Nifty IT index gained 2.92 per cent against 12 per cent gain registered by benchmark index NSE Nifty.
On the subdued performance of IT stocks, Nirmal Bang Securities in a note said, “IT index has underperformed Nifty by 920 basis points in the March 2017 quarter driven by constrained visibility on revenues best characterised by NASSCOM delaying its FY18 growth forecast for the industry from February 2017 to May 2017.”
“Margin concerns surrounding US H1-B visas also affected sentiment. Other factors such as money flowing back into the domestic sectors as the effect of demonetisation on the December 2016 quarter’s numbers was not as bad as initially feared, doubts about the execution of US President Donald Trump’s reflationary agenda, sharp appreciation of rupee against dollar (USD) in March 2017 because of strong portfolio inflows further hurt IT stocks,” the brokerage firm said.
The Nifty IT index was trading 1.15 per cent down at 10,580.35 around 11.45 am (IST).
Among the 10-components in the index, 6 were trading in red with heavyweight Wipro falling the most at 1.81 per cent, followed by Tech Mahindra (down 1.67 percent), HCL Technologies (down 1.40 per cent), Infosys (down 1.37 per cent), TCS (down 0.67 per cent) and OFSS (down 0.04 per cent).
However, Mindtree and KPIT were up 0.12 per cent and 0.15 per cent, respectively.
Shares of Infosys declined after fresh row erupted between the founders and the Board of the company over the pay hike to chief operating officer U B Pravin Rao.
Infosys founder N R Narayana Murthy on Sunday said that the compensation hike to Rao approved by the board in February was not “proper” and “will likely erode the trust and faith of the employees in the management and the board”.
In a chat with ET Now, Anil Singhvi, Founder & Chairman, Ican Investment Advisors said, “Murthy is making a mountain out of mole. If we compare the hike in salary of Praveen Rao with the industry peers, it is not very high. So, I do not think he is making any valid point.”
For the quarter ended March 31, 2017, the Nifty IT index gained 2.92 per cent against 12 per cent gain registered by benchmark index NSE Nifty.
On the subdued performance of IT stocks, Nirmal Bang Securities in a note said, “IT index has underperformed Nifty by 920 basis points in the March 2017 quarter driven by constrained visibility on revenues best characterised by NASSCOM delaying its FY18 growth forecast for the industry from February 2017 to May 2017.”
“Margin concerns surrounding US H1-B visas also affected sentiment. Other factors such as money flowing back into the domestic sectors as the effect of demonetisation on the December 2016 quarter’s numbers was not as bad as initially feared, doubts about the execution of US President Donald Trump’s reflationary agenda, sharp appreciation of rupee against dollar (USD) in March 2017 because of strong portfolio inflows further hurt IT stocks,” the brokerage firm said.
