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Last Updated : Oct 15, 2020 11:52 AM IST | Source: Moneycontrol.com

D-Street Buzz: IT stocks underperform - Persistent Systems, HCL Tech, Tech Mahindra, Mindtree down 3-5%

IT index underperformed, down over 2 percent dragged by Tech Mahindra, HCL Tech and Infosys which shed 2-3 percent followed by Tata Consultancy Services.

A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS
A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS

The Indian stock market is trading in the red with Sensex down 180.57 points or 0.44 percent at 40614.17, and the Nifty shed 45 points or 0.38 percent at 11926.

Among the sectors, the IT index underperformed, down over 2 percent dragged by Tech Mahindra, HCL Tech and Infosys which shed 2-3 percent followed by Tata Consultancy Services.

Share price of Mindtree was down 5 percent ahead of its September quarter results. The other losers included Mphasis, Coforge and Wipro.

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Infosys was one of the most active stock on NSE in terms of volumes with 2,90,53,672 shares being traded followed by Wipro where 1,95,21,713 shares were being traded.

Jefferies has a buy rating on Infosys and has raised target to Rs 1,380 from Rs 1,140. The Q2 results surprised positively with revenues up 4% QoQ. Research house raised its FY21-23 estimates by 2-7%. The new guidance reflects higher confidence in stronger growth, reported CNBC-TV18.

Goldman Sachs also has a buy with target at Rs 1,369 while CLSA has a buy rating as well with target raised to Rs 1,330 from Rs 1,180.

Infosys board declared an interim dividend of Rs 12 per equity share and fixed October 26, 2020 as record date for interim dividend and November 11, 2020 as payment date.

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The S&P BSE IT also shed 2 percent dragged by Persistent Systems which was down 5 percent followed by Mindtree, Tech Mahindra, Coforge, HCL Tech, Sonata Software and Ramco Systems.

Axis Securities initiated coverage on Persistent Systems with a buy rating and target Price of Rs 1,580 valuing at 21x to its FY23E EPS. The brokerage believes Persistent is well placed to bounce back post COVID-19 pandemic.

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First Published on Oct 15, 2020 11:52 am
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