1 min readMumbaiAug 18, 2011 11:07 AM IST
First published on: Aug 18, 2011 at 11:07 AM IST
BNP Paribas has downgraded Indian IT sector to ‘deteriorating’ from ‘neutral’ and cut six software firms to reduce as it believe the stocks were yet to reflect prolonged macro weakness.
Despite these stocks declining by an average of 13 percent vs a 7 percent drop of the Sensex in August alone,we think they are yet to reflect a likely prolonged anaemic macro growth scenario and the 50 percent chance of a US recession that our economics team forecasts,the French bank said in a note. It downgraded Tata Consultancy Services TCS,Infosys Technologies and Wipro to ‘reduce’ from ‘buy’.
We lower our FY13 EPS estimates by 12-31 percent for the six stocks and to 10-30 percent below Street,it said.
At 10.48 a.m.,the IT index of the BSE was down 2.15 percent underperforming the benchmark index ,which was down 1.01 percent.
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