With the IT majors TCS and HCL Tech putting up a rather subdued performance in the quarter ended September 30, 2014, the CNX IT index dived by over 350 points with TCS, CMC and HCL Tech stocks witnessing sustained selling pressure after more than two hours into trading in the morning today.

Even the announcement of merger of TCS with its group company CMC did not help in lifting the sentiment in both the stocks with CMC tanking by nearly 13 per cent. It was Infosys, which is trading cum-bonus, that seems to be holding the IT index and preventing further erosion in its value but the stock is up by just about Rs 3.

The extent of weakness in the IT stocks could be gauged from the fact that out of the 20 stocks constituting the CNX IT index, only three are in the green with the rest 17 stocks in the red.

Leading the losers were TCS, CMC and HCL Tech. HCL Tech lost ₹134.80 or 8.14 per cent, to trade at ₹1,521.05.

TCS and CMC both came under heavy selling pressure. TCS shed a massive ₹202.55 or 7.56 per cent to ₹2,475.55. CMC crashed by a huge 12.80 per cent or ₹278.80 to trade at ₹1,898.80. Wipro , another IT major, was also down but marginally, by ₹4.65 to Rs 568.65.

Another Tata Group IT company Tata Elxsi too was down by ₹27.80 to ₹570.70. Tech Mahindra too was down by ₹29.35 at ₹2,276.

Infosys was holding itself, though by a slender margin, at ₹3868.85, a gain of a mere ₹ 3.55. But the stock is down from the day’s high of ₹3,922.80. If Infosys also slips into the red, then the CNX IT index may see further value erosion.

The CNX IT index was down by about 354 points.

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