The rather subdued growth for 2014 projected by Cognizant Technology Solutions (CTS) that is not listed in India appear to have dampened the investor sentiment towards IT stocks with the CNX IT index shedding more than 100 points in the morning trade today.
Among the frontline IT stocks, only Wipro was in the green with TCS, Infosys, HCL Tech and Tech Mahindra, all trading weak.
CTS growth projections
CTS, which came out with its results yesterday for 2014 FY, had projected a 16.5 per cent growth in revenue for this year over 2013 (the company follows a January to December FY).
This had an impact on the IT sector, particularly on the frontline IT stocks. The projected growth of CTS for the year was rather conservative in the context of the scorching pace of growth investors have come to associate with it.
Among the major IT counters, it was only Wipro which was in the green, trading at ₹564.50, up by ₹4.10. However, the other IT majors were trading rather weak.
Tech Mahindra lost ₹4.85 to trade at ₹1,835, Infosys was down by ₹34.25 at ₹3,547, HCL Tech was trading at ₹1,377.95, a loss of ₹15.70 and TCS was down by ₹35.05 at ₹2,159.35
Other than Wipro, a few small IT stocks like Hexaware, Polaris, Financial Tech and Mphasis were in the green but barely. While five IT stocks forming the CNX IT were trading in positive territory, 15 stocks were down.
But the stocks and the IT index have seen some recovery from the lows. The CNX IT index , which touched a low of 9,599.45 points, has pulled back to 9,631.55 points, a loss of 86.90 points.