Results and earnings guidance from TCS and Infosys will set the tone for IT stocks for the near term. Both TCS and Infosys lowered their earnings forecasts and this resulted in some weak spells for their stocks during the second of the July - September quarter.
Amid cautious trades, Tata Consultancy Services is trading 2% down at Rs 2332 now, after having declined to Rs 2323.25 earlier in the day.
For the quarter ended June 30, 2016, Tata Consultancy Services reported a consolidated net profit of Rs 6497 crore, up 1.31%, compared to a net profit of Rs 6413.12 crore in the quarter ended March 31, 2016.
Many expect TCS to report somewhat weak numbers for the second quarter. The pace of growth is likely to be a bit slow for the current financial year. If the company has to record an over 7% growth in the financial year, then it has to rake in a revenue of close to $9 billion in the second half.
Last month, TCS had stated that, due to a slowdown in discretionary spending by banking, financial services and insurance companies in the U.S., the company's sequential growth might see a loss of momentum.