The stock markets reacted sharply to yet another indication that the technology party is getting over. After getting a disappointing guidance from infotech bellwether Infosys Technologies just five days ago, Tata Consultancy Services Ltd (TCS) — India’s largest software firm — upset investors again, pulling down a jittery stock market. Just when the stock markets were recovering by around 113 points — after a 312-point crash in the last two days — on Tuesday morning trades, TCS announced lower profits than what analysts’ had projected, pulling the markets to close 22 points down. Most infotech shares fell across the board. TCS plummeted by nearly 11 per cent soon after the results and closed 8.37 per cent down. The results of Tata Consultancy Services have now almost confirmed the worst fears of investors: tech sector is facing a slowdown. What is adding to the nervousness is that US giant IBM — the largest computer company in the world — recently announced a fall in profits and other tech majors like Samsung and LG are also treading a similar path. ‘‘Investors are definitely disappointed with the figures of tech companies. In the short-term, shares may not do well.but the long-term outlook is positive,’’ said Motilal Oswal, chairman, Motlilal Oswal Securities. IT stocks declined sharply in the recent past, especially after Infosys last Thursday said customers were slowing orders because of their pre-occupation in meeting new US corporate rules. ‘‘The results and estimates of Infosys Technologies and TCS show that the tech sector is facing a slowdown,’’ said Venkat Aiyer, dealer, Bombay Stock Exchange.
