IT stocks slip despite a weaker rupee; Infosys lead the fall

NEW DELHI: IT stocks took a severe beating despite the rupee taking a hit against the US dollar. TCS was the biggest loser in the pack in intraday trade, slipping over 3 per cent. However, the stock made a recovery in later part of the day, and closed at Rs 2,643.15; down 1.97 per cent.

At close, Infosys and MindTree became the biggest losers in the pack.

Reason for the fall: Falling oil prices have led drillers and oil services companies to clamp down on their spending, hurting Indian IT providers. Infosys and Wipro have also flagged weakness in the energy sectors, ET reported.

The third and fourth quarters of the fiscal are typically weaker than the quarters in the first half of the year. Earlier this week, Praveen Rao, chief operating officer of Infosys, had raised concerns over revenue growth in energy sector, added the report.

Wipro has also said it expects slow growth in its energy business in the next two-three quarters.