New Delhi, Jul 11 (PTI) Shares of Tata Consultancy Services (TCS) dropped nearly 3.50 per cent on Friday after its June quarter earnings failed to enthuse investors.
The bellwether stock declined 3.46 per cent to settle at ₹3,265.40 apiece on the BSE. During the day, it dropped 3.57 per cent to ₹3,261.35.
On the NSE, it went lower by 3.47 per cent to ₹3,264.50.
The company’s market valuation eroded by ₹42,295.44 crore to ₹11,81,450.30 crore.
The stock was the biggest laggard among the Sensex and Nifty firms.
Other IT stocks too faced selling pressure, with Wipro, HCL Tech, Infosys and Tech Mahindra ending in the negative territory.
In the equity market, the 30-share BSE Sensex tanked 689.81 points or 0.83 per cent to settle at 82,500.47. Similarly, the 50-share NSE Nifty dropped 205.40 points or 0.81 per cent to 25,149.85.
“Dalal Street faced a broad-based selloff on Friday, as weak earnings from Tata Consultancy Services (TCS) triggered sharp profit-booking across sectors,” Gaurav Garg, Analyst at Lemonn Markets Desk, said.
The country’s largest IT services company TCS on Thursday reported a 6 per cent growth in the June quarter net profit at ₹12,760 crore, helped by a jump in non-core income even as revenues grew at a tepid pace.
The rupee revenue grew 1.3 per cent to ₹63,437 crore during the quarter, but was down by over 3 per cent on a constant currency basis, as the company faced headwinds in its major markets amid a winding down of the BSNL deal, which helped it in recent quarters.
“Sentiment turned risk-averse amid mounting concerns over a tepid Q1 earnings season, exacerbated by Tata Consultancy Services’ underwhelming quarterly performance and cautious management commentary,” according to Bajaj Broking Research.
The other income for the company, which is the first major player to report the April-June performance, jumped to ₹1,660 crore from ₹962 crore last year, courtesy of a one-time write-back of income tax paid earlier, which helped the company’s bottom line.
Its managing director and chief executive officer K Krithivasan said it is experiencing a “demand contraction” due to the continuing uncertainties on the macroeconomic and geopolitical fronts, and added that he does not see a double-digit revenue growth in FY26.
“The session began on a negative note following disappointing results from IT major TCS, which further worsened due to profit-taking in heavyweight stocks across other sectors,” Ajit Mishra, SVP – Research at Religare Broking Ltd, said.
