Moneycontrol BureauIndian IT firms, plagued by a combined effect of demand slowdown growth and detrimental policies of US President Donald Trump's, are now also being pushed by investors to consider share buy backs, reports The Economic Times.After hedge fund Elliott Management asked for increased share buy backs at Cognizant last year, other domestic and foreign institutional investors are demanding the same from the IT giant.Cognizant has discussed the buy back request with Elliott, but is yet disclose whether it will give in to a possible buy back. The company may shed more light when it reports its earnings on February 8.However, Cognizant was only the start, other firms have also received similar requests. For instance, Wipro announced a buy back of upto 40 million shares last year.Former Chief Financial Officer of Infosys, V Balakrishnan, tells ET the returns for IT shareholders have been very tepid, and the need of the hour for IT companies is to bolster shareholder value to avoid such requests from investors.Balakrishnan also adds the these firms should give more clarity to shareholders about the plans to grow and how much time and money would be needed to reach there. This would build more investor confidence among them.NASSCOM had earlier cut growth guidance for the IT sector for the current fiscal to 8-10 percent from its earlier 10-12 percent. Congnizant and Infosys have also trimmed growth guidance, while Mindtree is of the opinion that a slowdown is likely.
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