IT stocks slump up to 4% on cost pressure buzz

NEW DELHI: Shares of IT majors Infosys, TCS and Wipro declined up to 3 per cent on Wednesday amid a media report which quoted Infosys spokesperson saying that the company’s clients were asking for 20-30 per cent cut in prices for projects.

At close, shares of Wipro were down 2.10 per cent at Rs 548.85. TCS fell 2.97 per cent to Rs 2615.35. Infosys declined 1.83 per cent to Rs 961.50 on BSE.

Tech majors like Wipro, Infosys, Cognizant and Tech Mahindra have initiated annual performance reviews, a process that weeds out bottom performers or non-performers. This has compounded fears that thousands of employees in the sector could be shown the door over the next few weeks, PTI reported.


Earlier this week, there were reports that Wipro’s Azim Premji was looking at selling his holding in Wipro, which the founder of the company later denied.

Meanwhile, a study by US-based HfS Research for 2016 suggests HCL Technologies, Wipro and TCS are among 10 biggest engineering services firms in the world, with over a billion dollars in revenue from that stream.