IT stocks hit by TCS downgrade, Cognizant

Last Updated: Tue, May 08, 2012 06:32 hrs

Worries about earnings hit Indian software services exporters, which weighed on the the main index. TCS falls 4 percent after JP Morgan downgraded it to 'neutral' from 'overweight' saying the stock price was now 'fully valued' at current 19 time forward fiscal 2013 earnings.

Shares in the sector were also hit after U.S. rival Cognizant Technology Solutions Corp lowered its full-year forecast, citing weak demand from North American financial services clients.

Second-ranked Infosys lost 3 percent on the day. The National Stock Exchange's IT index is flat for May as of Monday's close, compared with a 2.6 percent fall in the Nifty.

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