IT stocks get bludgeoned: It smells like 2008, say experts

Technology stocks have taken a brutal beating on Dalal Street and it's all thanks to BNP Paribas, which downgraded the I-T services sector from neutral to deteriorating. It also downgraded six key I-T stocks to a "reduce" rating. CNBC-TV18's Kritika Saxena reports.

S&P's downgrade of the US credit rating has sparked talk that US companies may reduce their IT budgets and this has pushed IT stocks in India over the edge.
The IT indices fell over 4% each.
But S&P's action is not the only factor. After CLSA downgraded the IT sector, BNP Paribas has followed suit downgrading the IT services sector from "Neutral" to "Deteriorating".
It has also downgraded six key IT stocks to a "reduce" rating and projected a flat to muted sequential growth for these firms in the next few quarters.
Sandeep Bhatia, ED & Head