Shares in IT stocks fell in trade after Karnataka's health minister said he will ask technology companies to stop sending employees on overseas assignments, unless it is an emergency. Bengaluru, the state capital has recorded three new cases of the Covid-19 infection on Tuesday.
Shares in Infosys fell as much as 3 per cent, while Tech Mahindra and Wipro shares fell more than 2 per cent each. The drop was despite the stock market seeing a sharp reversal and the Sensex trading with gains.
Travel restrictions are going to be a serious worry for IT companies, given that IT employees have to travel very frequently abroad to onsite locations. If the government persists with its restrictions, IT companies could see some serious impact on their businesses in the next few quarters.
In any case, without the travel restrictions as well, one is likely to see some serious impact on the IT sector, as well as sector like tourism and hotels.