Indian IT stocks traded lower on Wednesday after U.S. technology giant IBM reported a sharp earnings miss and warned of softer enterprise software spending, raising fresh concerns about global technology demand ahead of the earnings season for Indian software exporters.
Leading the decline was Tata Consultancy Services (TCS), which slipped as much as 2.36% intraday to Rs 2,144, after opening at Rs 2,173. The stock was last trading around 1.3% lower.
Infosys also remained under pressure, falling up to 1.52% during the session to Rs 1,075 after opening at Rs 1,082.85. Wipro declined as much as 1.41% to Rs 174.65, compared with its opening price of Rs 175.12. Other IT names, including KPIT Technologies, HCL Technologies, Tech Mahindra, Hexaware, LTIMindtree, Coforge and Tata Technologies, also traded in the red.
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The weakness followed a historic overnight selloff in IBM shares. The U.S.-listed stock plunged 25.21% to $217.07, marking its steepest single-day decline in decades after the company released preliminary second-quarter results that disappointed investors.
IBM pre-announced revenue of $17.2 billion and adjusted earnings per share of $2.93, missing Wall Street expectations of $17.86 billion in revenue and $3.02 in earnings per share.
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