Equity Alert: IT shr dn up to 5%; NASSCOM sees cut in client budget

[K.Karthik Raja]

Equity Alert: IT shr dn up to 5%; NASSCOM sees cut in client budget
MUMBAI--2:12PM--Most frontline information technology stocks were
down up to 5% with Wipro slightly better compared with its peers as it
fell only around 2% in a weak market.
IT shares declined despite rupee remaining weak against dollar, as
NASSCOM, the premier IT body in the country, today said India's IT
revenue growth is likely to be muted in FY09 due to lower client
spending in the U.S. and other countries.
"The slowdown in the U.S. is keeping outsourcers on the edge and
their spending is seen curtailed this year which will have a direct
impact on Indian IT companies
The weak market sentiment has only aggravated the problem. Though
the weak rupee can help these companies to a small extent, their
earnings will definitely suffer if the clients reduce spending, the
analyst said.
While HCL was down nearly 5%, Infosys, Satyam, and Tata
Consultancy Services were down 4%.
Support for HCL is seen around 279 rupees and those for Wipro,
Satyam, and TCS around 460 rupees, 465 rupees, and 848 rupees,
respectively.