Nifty IT stocks laggard as September quarterly season nears; TCS, Infosys, Wipro in red

Infosys has already informed the date for presenting its second-quarter result for financial year FY21.

Sep 28, 2020 12:09 IST India Infoline News Service

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All sectoral indices are broadly on a bullish note during Monday's trading session tracking global counterparts, however, the curve of upside was lacklustre in IT stocks.

The Nifty IT opened in red during early deals, however, the index now trades on the muted level. Investors are seen to maintain cautious ahead of September 2020 (Q2FY21) quarter season which is set to commence from next month.

At around 12.06 PM, Nifty IT was trading at 19,656.95 up 27.60 points or 0.14%. The index has also touched the day's high and low of 19,774.75 and 19,463.65 respectively.

The performance was dim due to heavyweight stocks such as TCS, Infosys and Wipro which are trading in the red.

Infosys leads the underperforming stocks list on Nifty IT, by trading at Rs1,002.40 per piece down 0.89%. Infosys was joined by another IT-giant Tata Consultancy Services (TCS) which is the second largest company in terms of market share after RIL on exchanges. The Tata Group company was performing at Rs2,406.90 per piece down 0.64%.

However, Wipro stock was trading in red, but flat at Rs3,458.05 per piece compared to the previous closing.

Infosys has already informed the date for presenting its second-quarter result for financial year FY21. Q2 will be announced on October 14, 2020. On the other hand, TCS and Wipro are yet to intimate about their record date for Q2 financial performance.

Moreover, on Nifty IT index, the gainers list involved stocks like Mphasis at Rs1,345.40 per piece surging by 5.80%, followed by HCL Tech (Rs839.70 per piece), Mindtree (Rs1,286.65 per piece), Tech Mahindra (Rs781.70 per piece) and L&T Infotech (Rs2,500 per piece)  advancing by near 1% each.

Last week, IT stocks were among major outperformers as the global professional services company, Accenture Plc’s latest results restored street's faith of a recovery in the sector.

In the quarter ending August 2020, Accenture recorded a 1% drop in constant current revenues, however, outsourcing revenue grew by 7% from the year-ago quarter. 

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