IT stocks tank on Cognizant's proposed cost cutting; rupee jumps

India Infoline News Service | Mumbai | March 20, 2017 14:17 IST

IT stocks, including Infosys and TCS are under immense pressure in Monday’s trading session owing to reports that top IT player, Cognizant was planning to drop a minimum of almost 6,000 jobs, defining 2.3% of its workforce in total, in order to sustain in the advanced IT environment, which is moving towards new digital services rapidly.

IT stocks, including Infosys and TCS are under immense pressure in Monday’s trading session owing to reports that top IT player, Cognizant was planning to drop a minimum of almost 6,000 jobs, defining 2.3% of its workforce in total, in order to sustain in the advanced IT environment, which is moving towards new digital services rapidly.
 
As per the reports, the cutbacks were probably to be higher this year than usual. The news has come at a time when national IT majors are refurbishing to cope with tighter laws related to H-B1 visas in US, and gearing up to inculcate emerging technologies. This move comes in the aftermath of a sharp recognition in the rupee post US Fed meet.
 
Domestic IT firms have been dependent on the work visa, but snow they are trying to adjust their business models to minimise their dependency on visas.
 
The second largest IT firm, Infosys’ stocks dropped by 1.96% to hit the low of Rs 1,020 on Sensex in Monday's trading session; whereas the stocks of TCS tanked by 1.54% to Rs 2,486.90 on BSE, and Wipro dropped by 1.24% to Rs 498.

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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