CLSA downgrades Indian IT services firms

MUMBAI, INDIA: Independent brokerage and investment group CLSA downgraded the Indian information technology services sector to "underweight" from "neutral", saying quarterly revenue growth on an annual basis has peaked for technology companies and a downtrend was likely.

It downgraded Tata Consultancy Services (TCS) and Infosys to "underperform" and said it has no positive ratings for the sector.

"Indian IT holds little promise of sustainable absolute returns hereon," CLSA said in a note.

The Indian IT index was down 2.1 per cent, while the benchmark index was down 1.3 per cent on Monday afternoon.

In March CLSA had downgraded Wipro too.