TOP STORIES

No bail for Sahara chief: SC

New Delhi: The Supreme Court on Tuesday refused to grant bail to Sahara Group chief Subrata Roy,...... Read More >>

Furore in Parliament over judicial appointments

New Delhi: Amid furore created by AIADMK members in Parliament for the second day running,...... Read More >>

Evidence tampered at MH17 crash site: Australia

Melbourne: Australian Prime Minister Tony Abbott today claimed that evidence has been tampered...... Read More >>

DMK members barred from attending rest of assembly session

Chennai: DMK members in Tamil Nadu Assembly were today evicted en masse for the fourth time in the...... Read More >>

BJP credits "Modi magic" for JMC polls victory

Junagadh (Guj): Hailing their party's victory in Junagadh Municipal Corporation (JMC), BJP leaders...... Read More >>

MOST POPULAR

VIDEO

Drop in TCS scrip wipes out Rs 16,000 cr in investor wealth

Thursday, 20 March 2014
PTI

Mumbai: Shares of Tata Consultancy Services today plunged almost 4 per cent, wiping out about Rs 16,000 crore in investor wealth, after the IT major indicated to analysts that weak India business and lower working days could drag down March quarter growth rate.

After falling 5.3 per cent to touch the day's low of Rs 2,015 on the BSE in intra-day trade, the IT major's scrip finally ended at Rs 2,040.95, down 3.84 per cent at the BSE.

As a result of the fall in TCS shares, its market capitalisation fell by Rs 15,964 crore to Rs 3.99 lakh crore. "We attended Tata Consultancy Services' (TCS) Sell-Side Analysts' Briefing...According to the management, Q4FY14 is likely to be touch softer than Q3FY14 in constant currency terms.

The growth is likely to be weaker in Europe, Indiaand Middle East/Asia Pacific," said Shashi Bhusan, Senior Research Analyst-Institutional Equities, Prabhudas Lilladher. The company emphasised that 'weak' India business and lower working days - likely impacted by harsh winters in the US - could drag the quarterly growth rate, according to brokerage ICICIdirect.

Infosys shares also came under selling pressure and tumbled 2.32 per cent to Rs 3,271.55 after moving between Rs 3,366.50 and Rs 3,240.15 largely in tandem with overall trend.

Brokers said following dip in the country's largest software exporter TCS, selling activity also emerged in other IT sector counters.

Shares of software exporters have witnessed selling this month so far as investors locked-in gains after recent strong rally, powered by expectations of improved earnings.

"TCS's 4QFY14 outlook on revenue growth is a tad below our expectation of nearly 3 per cent q-q growth, but FY15 outlook of revenue growth being better than FY14 is reassuring," wrote Nomura analysts Ashwin Mehta and Pinku Pappan in a client note.

The BSE IT sector index suffered the most by falling 2.24 per cent to close at 8,668.13 points. Mindtree, HCL Technologies, Tech Mahindra and Mphasis slipped.

Bucking the trend, Wipro and Hexawre ended in positive zone with minor gains. Meanwhile, the benchmark BSE Sensex ended almost flat at 21,832.86.


      

Today's E-Paper

Polls

Do you think Justice Markandey Katju's allegations are true?