Shares of HCL Tech today slumped 5% to ₹1044 on BSE after its management indicated FY23 growth to be at the lower end of the 13.5% to 14.5% band. It was the biggest loser among the 30 Sensex stocks. In comparison, Sensex was flat.
Chief executive officer C Vijayakumar at the company’s investor day said: “In October, we had increased our guidance from 13.5 to 14.5. we had certain assumptions which helped us to devise 16-17% services growth. we had assumed certain furloughs. But we are seeing a bit higher. BFSI is the segment which is a little bit impacted by furloughs followed by tech companies,” he said.
Market veteran Sandip Sabharwal, the former head of equity at SBI MF, in a tweet said: “Small warnings have started. Will become bigger as we move into 2023. Avoid Technology and Export Oriented sectors in general. You will get them cheaper over the next 6 months.”
Infosys and Tech Mahindra shares also struggled today, down between 0.8% and 1%. IT stocks have seen a sharp correction this year on fears of demand slowdown. The Nifty IT index is down 22% this year as compared to 7% rise in the broader Nifty50 index.
India’s IT services industry was one of the top benefactors during the pandemic as several businesses rushed towards digitizing infrastructures and adopted remote or hybrid working policies. In 2021, Nifty IT index had surged nearly 60%.
However, top-tier IT firms have recently given cautious forecasts so far amid the economic uncertainty globally as global central banks tighten their monetary policies. TCS had earlier said clients are taking longer to decide on bigger deals.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
.