Stocks from the IT sector were dragging the markets lower, following a dismal set of results from Wipro.
Among the top 5 Nifty losers in trade, three were from the IT pack, including the likes of Tech Mahindra, HCL Tech and Infosys. Tech Mahindra shares were down almost 5 per cent, while Infosys dropped almost 3.5 per cent and HCL Tech was down 3 per cent.
Investors remained worried that demand from US companies would continue to be subdued over the next few quarters for some of the Indian IT majors.
Wipro on Wednesday reported a drop in its net profit to Rs 2,345.20 crore for March quarter compared with Rs 2,493.90 crore in the corresponding quarter last year.
The company said that the results were impacted negatively by the coronavirus and will not provide any revenue guidance for the June quarter. Wipro also skipped payment of dividend.
Investors now await the results of TCS for the quarter ending March 31, 2020 and more importantly the commentary. The results are due after market hours today. It is likely that none of the IT majors would give a guidance for the coming quarters.
The demand environment is likely to remain challenging for some of these companies at least for the next few quarters.