HCL Tech tanks nearly 10% on bourses

HCL Shares opened weak and then fell 8.71% to touch an intra-day low of Rs 400.55 on BSE.

Shares of HCL Technologies today tanked nearly 10 per cent on the bourses although the company posted a 50 per cent jump,year-on-year,in net profit for the first quarter ended September 30.

Shares of the company opened weak and then fell 8.71 per cent to touch an intra-day low of Rs 400.55 on the BSE,which opened weak and has been trading in the red. Similarly,on the National Stock Exchange,the company,after opening at Rs 418.80,tanked 9.28 per cent to Rs 399.25.

“Shares of the company tumbled as the outlook for the IT sector looks muted amid the global economic slowdown,” Kejriwal Research and Investment Services (KRIS) Director Arun Kejriwal said

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The Indian IT industry – which earns about 85 per cent of its revenues from the US and the European markets – is likely to feel pricing pressures and see a drop in new orders amid recessionary fears in the developed economies,Kejriwal added. HCL Tech was later trading at Rs 401.20,down 8.57 per cent on the BSE,and at Rs 400.70,down 8.95 per cent on the NSE at 1323 hours.

The company’s net profit was Rs 496.7 crore for the September quarter of its fiscal (July-June),up 50 per cent from the year-ago period when it stood at Rs 331.1 crore. The company’s revenues were Rs 4,651.3 crore during the quarter,up 25.4 per cent from Rs 3,708.1 crore in Q1,FY’11.

The BSE Sensex was down over 300 points or 1.8 per cent in the afternoon trade.

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