IT Shares Extend Losses For Second Consecutive Day Post TCS Earnings

Information technology stocks have extended their losses for the second consecutive day post the TCS earnings. HCL Tech has nosedived 4.4 per cent to Rs 1,244 to top the losers list on the BSE, whereas Tech Mahindra, TCS and Infosys have lost 1.2 per cent each in the BSE pack.

TCS kicked off the earnings season on Friday, posting a consolidated net profit of Rs 9,624 crore ($1.28 billion) in the quarter ended September 30 from Rs 7,475 crore a year earlier. The company's consolidated revenues from operations jumped to Rs 46,867 crore during the quarter under consideration. TCS shares plunged as much as 6.3 per cent on Monday in their worst single-day decline since March 23, 2020, dragging the other IT stocks lower.

According to analysts, the quarterly performance of TCS fell short of Street estimates, triggering a battering on the IT counters. The Infosys numbers, which will be announced post market hours on Wednesday, and the HCL Tech and Tech Mahindra earnings due on Thursday, also seem to be unnerving the market participants.

The BSE Sensex and NSE Nifty are trading virtually unchanged on late-Tuesday afternoon amid a choppy session of trading.