IT stocks fall on weak US economic data

IT stocks,led by sector major TCS,fell in the range of 1 to 4 per cent on the BSE today.

IT stocks,led by sector major TCS,fell in the range of 1 to 4 per cent on the BSE today hit by weak economic data in the US and continuing sovereign debt crisis in Europe.

The US and Europe are the two key markets for the Indian IT companies.

IT giant TCS was the worst loser as it lost 3.58 per cent to settle at Rs 1,110.50 on the BSE. In intra-day,the stock diminished by 4.12 per cent to hit a month’s low of Rs 1,104.15.

Bellwether Infosys Technologies slipped by 1.29 per cent to close the day at Rs 2,764.40 after hitting a month’s low during intra-day.

TCS and Infosys together proved the biggest dampeners for the broader market after RIL.

“The fall in these stocks can be attributed to weakness in the global market after disappointing US data and concern on Greece debt crisis,” Motilal Oswal Securities Associate VP -Sr Analyst – Technical Equities Parag Doctor said.

Wipro shed 1.64 per cent,HCL Technologies 1.54 per cent,Patni Computer Systems 3.56 per cent,Mahindra Satyam 2.11 per cent,MphasiS 0.95 per cent and Rolta India 1.79 per cent.

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Led by losses in these stocks,the BSE IT index fell by 1.94 per cent to settle at 5,818.66 and was the worst performer among the 13 sectoral indices.

Meanwhile,the BSE 30-share crucial index Sensex finished the day at 17,870.53,down 115.35 points.