Investors Dump IT Stocks Ahead of TCS Results

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, April 16, 2015, 11:37 [IST]

Investors for the first time are not gung-ho on IT stocks and have begun dumping Infosys, Wipro and HCL Tech, Tech Mahindra ahead of results from TCS.

Infosys and Wipro were down 2 per cent each, while Rolta slumped 10 per cent, while HCL Tech was down 2 per cent.

Analysts expect TCS to show muted growth in dollar revenue guidance. Also, most of the companies in the space are likely to be impacted by cross currency headwinds. TCS's dollar revenues are seen muted, while operating margins are expected to fall nearer to 26.7 per cent from 27 per cent.

Some analysts are predicting that the cross currency headwinds for the company will impact margins to the extent of at least 4 per cent.

TCS will set the tone for IT companies when its results will be declared after market hours today.

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