BSE IT index sheds 4.76% in biggest single-day drop in nearly two years

The IT index, a gauge for the performance of leading tech companies, saw its biggest decline in nearly two years of 4.76 per cent, after disappointing earnings posted by triggered a broad-base sell-off. The Nifty fell 4.6 per cent.

The profit posted by Infosys, the country’s second-largest software services provider, for Q4FY22 was below expectations because of margin pressure amid rising costs and lower utilisations. Its results stoked fears that the post-pandemic boom could be over and there could be de-rating in stocks because of normalisation of growth.

Shares of closed 7.3 per cent lower at Rs 1,621. The stock hit its lowest level in eight months in intraday trade. Also, Mphasis slipped 5.6 per cent, Tech Mahindra declined 4.7 per cent, and L&T Technology Services fell 4.5 per cent.

Earlier, Tata Consultancy Services, India’s top software exporter, had also missed earnings but only slightly. Shares of TCS fell 3.7 per cent on Monday.

“TCS’ results were a mixed bag but results were disappointing. For Infosys, the management commentary was on the weaker side. Not many people expected these numbers because we were not expecting order flows to get affected in the IT space,” said Ambareesh Baliga, independent market analyst

BSE IT index sheds 4.76% in biggest single-day drop in nearly two years

According to some experts, Monday’s fall in IT stocks had also to do with the global tech sell-off. The decline was the sharpest for the since May 4, 2020. “The results were not far away from expectations. Nasdaq’s one-year returns have turned negative now, which is affecting sentiment,” said G Chokkalingam, founder, Equinomics.

The IT pack has been the best-performing sector in the pandemic era.

However, part of the exuberance has come off this year as investors have scaled back their lofty expectations. Key factors impacting IT companies are higher-than-usual salary increments and normalisation of discretionary spends like travel and visa costs, said analysts. While IT companies are trying to increase prices to offset the pressure, analysts say this will take time and in the interim, there can be pressure on margins.

After the latest decline, the is down 13 per cent on a year-to-date basis. In comparison, the Sensex is down less than 4 per cent. The correction has helped cool off valuations, which had reached historical levels earlier this year. The 12-month forward price-to-earnings (P/E) multiple has come down from 32 times during the start of the year to 26 times at present.

“Valuations are reasonable now. I don’t think they will fall significantly. IT firms will have the advantage of the overall macro environment now, with oil prices rising and overseas investors selling, which will ultimately lead to a fall in the rupee. That will rescue the IT pack after a few days or weeks. As far as large-cap IT stocks are concerned, we are near the bottom,” said Chokkalingam.

“The orders coming for IT companies will be large. For large companies, there won’t be much trouble going ahead. It is a blip, and investors should utilise this to buy IT stocks,” added Baliga.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

istanbul escort aksaray escort arnavutköy escort ataköy escort avcılar escort avcılar türbanlı escort avrupa yakası escort bağcılar escort bahçelievler escort bahçeşehir escort bakırköy escort başakşehir escort bayrampaşa escort beşiktaş escort beykent escort beylikdüzü escort beylikdüzü türbanlı escort beyoğlu escort büyükçekmece escort cevizlibağ escort çapa escort çatalca escort esenler escort esenyurt escort esenyurt türbanlı escort etiler escort eyüp escort fatih escort fındıkzade escort florya escort gaziosmanpaşa escort güneşli escort güngören escort halkalı escort ikitelli escort istanbul escort kağıthane escort kayaşehir escort küçükçekmece escort mecidiyeköy escort merter escort nişantaşı escort sarıyer escort sefaköy escort silivri escort sultangazi escort suriyeli escort şirinevler escort şişli escort taksim escort topkapı escort yenibosna escort zeytinburnu escort porno 1080p porno izle 4k porno izle 720p porno izle abella danger alman alman porno alman porno izle aloha tube porno amatör amatör porno amatör porno izle anal anal porno anal porno izle arap porno asa akira porno asyalı porno bangbros porno bangbros porno izle banyoda sikis başörtülü porno beeg porno izle beyaz tenli porno izle biseksuel porno izle bisexsuel porno brandi love porno brazzers brazzers porno izle canli porno canli porno izle çinli porno çinli porno izle ensest porno ensest porno izle ensest seks erotik porno erotik porno izle esmer porno esmer porno izle etek altı fake agent fake taxi fake taxi porno fantazi pornoları fantezi porno izle fetiş porno fetiş porno izle fetish fransız porno fransız porno izle full hd hg porno izle gangbang porno genç kız porno izle genç kız sikişi genç teen porno izle gizli çekim porno gizli çekim pornosu grup pornosu grup porno grup porno izle hd pornolar hd porno hd porno izle hemşire porno hemşire pornosu hizmetçi porno hizmetçi porno izle ingiliz porno japon pornoları japon porno kızlık bozma kızlık bozma porno izle konulu porno konulu porno izle koreli porno köylü pornoları kumral porno kumral porno izle latin pornoları latin porno latin porno izle lezbiyen pornoları lezbiyen porno lezbiyen porno izle lisa ann porno liseli pornoları liseli porno liseli porno izle manken porno manken porno izle masaj porno izle masturbasyon porno izle masturbasyon pornoları mature porno mia khalifa porno mia malkova porno milf porno izle mobil porno mobil porno izle öğrenci porno izle öğretmen porno izle okul porno izle olgun kadın pornosu olgun porno oral porno oral porno izle oral seks porna izle pornhub pornhub porno izle porno film izle porno indir porno izle porno resimler porno star porntube porno izle redtube redtube pornoları riley reid porno rokettube rus pornoları rus porno rus porno izle sakso blowjob porno izle sarışın pornoları sarışın porno sarışın porno izle sarışın pornoları sekreter porno shemale sikiş sikiş sikiş izle şişman porno siyahi pornoları suriyeli pornoları swinger porno tecavüz porno teen porn türbanlı pornoları türbanlı porno türk pornoları türk porno türk porno izle türkçe altyazılı porno türkçe altyazılı porno izle xhamster pornoları xhamster porno xhamster porno izle xnxx xnxx porno xnxx porno izle xvideos xvideos porno izle yaşlı porno yeşilçam porno izle youjizz youporn youporn porno izle zenci porno güvenilir bahis siteleri bahis siteleri casino deneme bonusu casino siteleri deneme bonusu para yatırma bonusu bahis siteleri casino siteleribahis sitesi para yatırma