Indian companies listed on the US bourses witnessed heavy sell-off on Thursday.

Leading the slide was Infosys, whose ADR plummeted 9.6 per cent at 8 p.m. IST to $48.87 against the previous day's close of $54.06.

Wipro tumbled 7.05 per cent, Mahindra Satyam slumped 7.82 per cent.

Information technology counters have been on downswing ever since S&P downgraded the US rating.

Despite a sharp fall in the share price of IT companies, BNP Paribas downgraded India's information technology sector to ‘deteriorating' and cut ratings of top companies to ‘reduce' from ‘buy'. It downgraded Infosys Technologies, Tata Consultancy Services, Wipro, HCL Technologies, MindTree and Persistent Systems.

“We believe that even two-three quarters of flat-to-muted q-q revenue growth over FY12-13 (versus market expectations of a 4-5 per cent average) for our covered companies could lead to large EPS cuts. We lower our FY13 EPS estimates by 12-31 per cent for the six stocks and to 10-30 per cent below Street downward revisions to historical US GDP data bring into question recent above-trend India IT growth,” BNP said in a note to its clients.

Infosys slipped 3.5 per cent on the NSE, and Wipro crashed by 5.6 per cent.

Global rout against banking stocks seemed to have taken toll on ICICI Bank ADR too. It slumped 8.42 per cent while HDFC Bank ADR fell 5.05 per cent.

Tata Motors ADR, which has been on the downtrend following dismal sales figures and on rate hike, dipped 7.49 per cent while Sterlite Industries edged down 7.79 per cent.

All the listed Indian ADRs were trading deeply in the red.

Related Topics
comment COMMENT NOW