Nifty IT index tumbles nearly 4% on growth concerns; Infosys down 5%

- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
Shares of information technology (IT) companies were under pressure as Nifty IT index tumbled nearly 4 per cent in Wednesday’s intra-day trade amid fears of slowdown in the US.
On Tuesday, US markets shuddered with technology shares taking the biggest hit, after data showed monthly consumer prices rise unexpectedly in August, which cemented bets of a third straight 75-basis-point rate hike from the Federal Reserve next week.
Back home, Nifty IT index plunged 1,077 points or 3.7 per cent to 28,040 points on the NSE in Wednesday’s intra-day trade. At 11:00 am; the IT index, the top loser among sectoral indices, was down 3.4 per cent, as compared to 0.7 per cent decline in the Nifty50 index.
Tata Consultancy Services (TCS), Infosys, Coforge, Tech Mahindra, Larsen & Toubro Infotech, L&T Technology Services and Mindtree were down in the range of 3 per cent to 5 per cent.
The expenditure on technology products and services by IT and prospective clients fluctuates on several factors, like economic, geo-political, monetary and fiscal policies, and regulatory environment.
In the April-June quarter (Q1FY23), operating margins of IT companies were dented due to wage hikes rolled out in the quarter, supply side challenges, increase in sub-contractor expenses, and travel & visa related expenses.
“The companies mention about weakness in a few pockets as far as tech spending is concerned due to some impact of macro headwinds. The weakness largely pertains to banking, financial services and insurance (BFSI) and retail verticals. However, it is also heartening to see no downward revision in revenue growth guidance in FY23 by any of the companies,” analysts at ICICI Securities said.
However, analysts reckon that though margins bottomed in Q1, medium-term tailwinds of normalisation in attrition/sub-con, utilization and pricing exists from here on.
“IT index P/E multiples are down 30 per cent year-to-date (YTD), with earnings cut of around 5 per cent. While the P/E de-rating was led by macro risk on growth (FY24E), earnings cuts were driven by margin cuts as lead-lag between growth and operating structure normalize,” analysts at HDFC Securities said.
Meanwhile, BFSI, the largest revenue driver for most Indian IT companies, was in the range of 16.7-53.4 per cent in Q1FY23.
“An economic slowdown or other factors may affect the economic health of the United States, the United Kingdom, the European Union (EU), Australia or those industries where our revenues are concentrated. Our clients may operate in sectors which are adversely impacted by climate change, which could consequently impact our business and reputation,” Infosys said in FY22 annual report.
#1 stock adviser in India Accurate stock tips provider Best Equity Portfolio Management Best Intraday calls provider Best Intraday Tips Best Intraday tips provider Best Investment adviser in India Best Portfolio Management services Best Portfolio Management services in India Best SEBI registered investment advisor Best SEBI registered stock advisory company Best Share Market intraday tips Best stock advisor websites Best stock advisory company in India Best stock tips provider in india Best tips provider in India Genuine Account Management services Genuine SEBI registered advisory company Genuine stock market tips provider India no 1 stock advisory company India’s top rated advisory company India’s top rated Stock tips provider Intraday calls in stock future Intraday calls in stock market Intraday Jackpot tips Intraday Sureshot tips Intraday Sureshot tips provider Intraday tips Intraday tips in F&O Intraday trading in share market Intraday trading techniques Intraday trading tips Intraday trading tips & Strategies Intraday trading tips in stock market Investment adviser Jackpot intraday tips Most accurate investment adviser in India Most successful stock advisors in india Operator based calls Operator based intraday stock tips Operator based intraday tips Operator based options tips Operator based sureshot calls Share market trading tips online Stock market Stock market news Stock Market tips Stock market trading tips provider Strategy for Wealth Management and Financial planning Top rated Portfolio Management services Top rated SEBI registered stock advisory firms
Archives
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
Categories
- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
- Uncategorized
Calender
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | |||||
3 | 4 | 5 | 6 | 7 | 8 | 9 |
10 | 11 | 12 | 13 | 14 | 15 | 16 |
17 | 18 | 19 | 20 | 21 | 22 | 23 |
24 | 25 | 26 | 27 | 28 |