IT pack falls on profit booking
CNX IT, sectoral index on NSE, is ruing down 1.65% when Nifty is down barely 4 points, as IT stocks are ruling soft today. There are 14 stocks declining to 6 advancing in the 20 stock index. Many IT companies have declared their September quarter results so far – Infosys, TCS, HCL Tech, Mindtree, NIIT Tech and CMC.
The ones which have declared results since Tuesday afternoon (Wednesday being market holiday) - market supremo TCS, India’s 4th largest IT exporter HCL Tech, mid-cap player Mindtree and NIIT Tech - have all corrected anywhere between 2-4% each today, despite posting better-than-expected results, mainly on account of profit booking as valuations soared on expected bumper performance. TCS, HCL Tech and Mindtree were all ruling at or near life high levels.
Infosys and CMC which announced results earlier are also ruling soft, down 0.3% and 3.2% respectively.
Thus, the market seems to be going by the old school principle of ‘Buy on expectation, Sell on news’ atleast in case of the IT stocks!