Shares in TCS fell sharply by 4 per cent following a dismal set of Q4 results. The stock dragged the indices lower and also other IT stocks.
The company reported a dismal set of Q4 numbers with net profits coming in at Rs 5773 crores. The net profits would dip after adjusting for a bonus that the company declared later.
In dollar terms the revenue came in at $3900 million, which was way below analysts expectations.
The poor performance also had an impact on other IT stocks. Mindtree Fell 4 per cent, while Rolta was also down 4 per cent and Tech Mahindra dropped more than 3 per cent along with Infosys which fell one per cent.
Analysts say there could be fresh re-rating of the stock which could only drop lower in the coming quarters.
Foreign brokerage firm UBS has said that it is underweight on the IT sector.