TCS, Infosys, L&T’s IT stocks tanked, wiping $10Bn of tech wealth
Category: #business  By Pankaj Singh   Date: 2022-06-14
  • share
  • Twitter
  • Facebook
  • LinkedIn

TCS, Infosys, L&T’s IT stocks tanked, wiping $10Bn of tech wealth

All IT stocks of Indian tech giants like TCS, Infosys, L&T have recently tanked, wiping out investors’ wealth of around ₹80,000 crores ($10 billion) among a handful of IT stocks. This drop in the Nifty IT index stocks imitated the overall index, which was 3% down.

According to sources, TCS contributed almost half to the slide in Nifty IT but is more or less in proportion to its market capitalization compared to the other stocks in the index.

Inflation has been a pain in the nerve in the side of central banks of several countries globally. Shaktikanta Das, the Indian central bank governor, called it ‘globalized inflation’ while increasing interest rates for the second time.

The market crash also showcases a significant equity fall of the market worldwide amid US inflation hitting a 41-year high.

Wall Street has recently gotten through its worst week since January this year, and the US investors are in more pain.

This, in return, is terrible news for the Indian IT firms that rely on the US for a significant share of their revenues. Any sign of their spending habits deciphers into falling stock value.

The Indian IT sector made substantially amid the pandemic since the firms around the globe hurried to upgrade their IT infrastructure. But as inflation is becoming a pain point in most the economies globally, the firms are cutting back on spending.

This has directly impacted Indian IT giants like Infosys, Wipro, and TCS, among others.

As per recent research, the increasing margin headwinds in the coming time and revenue winds in the middle term from a possible macro slowdown imply that the sector’s earnings advancement cycle is behind.

The research states that soon there will be peak growth in revenue, and the margins of EBIT trending down from inflation reflects reversion.

Source Credit - https://www.businessinsider.in/tech/enterprise/news/tcs-infosys-lt-triplets-tank-on-us-troubles-wiping-10-billion-off-tech-wealth/articleshow/92172454.cms

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh    

...

Read More

More News By Pankaj Singh

Microsoft plans to layoff thousands of staff across multiple divisions
Microsoft plans to layoff thousands of staff across multiple divisions
By Pankaj Singh

Microsoft, one of the leading American technology companies, has reportedly announced to layoff thousands of employees in divisions including engineering and human resources, as per media reports. The anticipated layoffs would be the most recent i...

Instagram to simplify in-app user experience by removing the Shop tab
Instagram to simplify in-app user experience by removing the Shop tab
By Pankaj Singh

Instagram, the popular social media platform owned by the US-based tech firm Meta, has reportedly announced to simplify the user experience by changing its in-app navigation after years of confusing updates. This step is aimed to boost various produc...

China’s Ant Group receives approval to double its registered capital
China’s Ant Group receives approval to double its registered capital
By Pankaj Singh

Ant Group, the Chinese financial services company and a subsidiary of Alibaba Group, has reportedly received approval to nearly double its registered capital, marking an indication that authorities' concerns are being addressed. Apparently, An...