IT stocks continued to fall for the second day on Tuesday reeling under the impact of global financial crisis
MUMBAI: IT stocks continued to fall for the second day on Tuesday reeling under the impact of global financial crisis with the sectoral index taking a hit of 51.78, points or 1.44 per cent, amid concerns that the country's outsourcing sector will face the heat.
Shares of the country's largest software exporter TCS dropped 1.61 per cent to close at Rs 749.55 after touching an intra-day low of Rs 720, while IT major Infosys closed 0.64 per cent down at Rs 1,564.25.
Another IT major Satyam has an outsourcing deal with Lehman Brothers, wherein less than 100 employees of the domestic firm works for the US financial major.
When contacted, Satyam HR head SV Krishnan said, "The contract continues."
However, he added, that he had not received any formal communication from Lehman Brothers.
Satyam scrip dropped 5.57 per cent to an intra-day low of Rs 336.50 on the Bombay Stock Exchange. The scrip settled at Rs 356.35, down 3.21 per cent.
Analysts said the scrip had also been impacted by reports that Satyam would be giving pink slips to 4,500 employees.
On this Krishnan said, "We have not asked anyone to leave the organisation."
"The impact of the financial crisis in the US and the huge losses suffered by the global banks may have serious impact on outsourcing firms which mainly focus on the Banking and Financial service and insurance (BFSI) space in the global markets," an analyst with a leading domestic brokerage said.
Besides, recently TCS and Infosys had also said they may face some slowdown in orders from the US this year because of financial crisis.
The BSE IT index settled down 1.44 per cent at Rs 3,545.05 on Tuesday after touching an intra-day low of 3,436.87, although the market recovered from its early losses and closed flat.
Other losers in the IT index include, Wipro, Mphasis, Rolta India, Tech Mahindra and Aptech. They closed with losses between 2-4 per cent. However, scrips of HCL Tech and Moser Baer managed to close in the green.
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