TCS is currently the top loser on the BSE, along with the rest of the IT pack. TCS is down almost 5% at Rs.2019, with an intra day low at Rs.2015.

This stock and the others – Tech Mahindra, Infosys also figure out amongst the top losers as the outlook for the sector for Q4 has dimmed. It was Infosys which sounded off a not-so-rosy next quarter and while the market was uneasy with that itself, TCS, at its mid quarterly meeting held yesterday said  the same thing. It expects a much lower set of earnings in Q4, given the volatile Indian markets too.

But the good part is that it was not as negative as Infosys, which expects trouble right upto the first half of FY15. TCS, expects muted growth only in Q4, which as such is seasonally a weak quarter but for FY15, the company was bullish. Unlike Infosys, it does not expect as pressure in retail hi-tech, in fact expects no change in any verticals , expects no order cancellations or cut down on investments by companies. TCS estimates FY15 to be much stronger than FY14, with growth led by Europe and USA, with growth from India expected to remain sluggish.

Following this meet, no foreign brokerage house or domestic fund has downgraded the stock, in fact most of them continue to maintain a very positive view ahead. The market seems to be going through what we call a “knee jerk” reaction, without reading the fine print.