Nifty IT stocks denies market bulls, index sheds 150 pts ahead of Q3 earnings; TCS, Wipro, Tech Mahindra under pressure; Infosys top bull

12 Jan 2022 , 03:00 PM

Nifty Information Technology stocks were under selling pressure despite broader bullish markets tone on Wednesday trade. Today, all eyes are set on big IT guns that will declare their December 2021 (Q3FY22) quarterly results. Nifty IT index was the top bear on the exchange where majority scrips witnessed heavy profit bookings. Heavyweights logs free fall on the index and pushed it off the cliff ahead of Q3 earnings. The Nifty IT index has hovered between an intraday high and low of 38,902.80 and 38,424.75 respectively.

Also, the performance of all the stocks is actively monitored by the investors as financial earning season is on the centre stage now and it has also offset the concerns over new Omicron variant. Infosys, TCS and Wipro are the major results aligned to be announced later today while HCL Tech will announce its Q3 earnings on January 14.

At around 3:00 PM, Nifty IT was trading at 38,448.05 nosediving by 157.35 points or 0.41%. TCS was the top bear plummeted nearly 2% followed by Wipro slipping over 1.2%. L&T Technology Services and Tech Mahindra shed over 0.6% each.

L&T Infotech plunged 0.25%, while Mphasis dipped 0.23%.

However, rest Infosys, Mindtree, HCL Tech and Coforge maintained the upside trend on the struggling index.

Infosys advanced 0.91% at Rs1,872.55 per piece while Mindtree and HCL Tech added some marginal gains to the sector. Heavyweight Coforge was trading flat but in the green. 

According to the experts, in Q3FY22, Infosys’ top-line is expected to be higher on the back of the continued ramp-up of large deals and adoption of cloud and digital offerings. Also, stabilization in attrition numbers on a quarterly annualized basis is expected.

Also, Wipro is expected to meet its revenue guidance due to one month of revenue from ion and strong demand momentum. The company is seen to report a constant-currency revenue growth near 4%. However, TCS is expected to report a single-digit growth in the bottom-line front on a sequential basis, while EBIT margin will be driven by rupee depreciation.