IT shares trade weak; TCS, Infosys down over 2%

February 22
17:06 2017
Shares of information technology (IT) stocks were trading weak with the sector majors Tata Consultancy Services (TCS) and Infosys were down 2% each on the National Stock Exchange (NSE) on profit booking.

At 2:26 pm; the Nifty IT index, the largest loser among sectoral indices, was down 1.3% as compared to 0.2% decline in the Nifty 50 index.

Since February 1, 2017, IT index had outperformed the market by surging 9.5% against 2.2% rise in the benchmark index till Tuesday. TCS, Infosys Tech Mahindra and Oracle Financial Services had rallied between 10% and 14% during the period.

Among the individual stocks, Infosys was down 2% at Rs 992, after hitting intra-day low of Rs 987 on the NSE in the wake of ongoing controversy over the whistle blower’s complaints against the company surrounding its Panaya acquisition.

Infosys issued clarification on the status of the whistle blower complaints received by the company as reported in certain sections of the media.

This whistle blower’s complaint has been placed before the audit committee as is the normal practice, in accordance with the company’s Whistle Blower Policy, and the audit committee is taking steps to initiate an investigation into the allegations made, Infosys said in a regulatory filing.

TCS was down 2% at Rs 2,407, extending its previous day’s 1.5% decline. Earlier this week, IT services major TCS announced an Rs 16,000-crore share buyback – biggest in the Indian capital market, as it looks to return surplus cash to shareholders.

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