Indian IT stocks still in red, sensex down

MUMBAI, INDIA: Shares of software exporters fell as investors remained cautious on the long-term prospectus of the sector citing negative macro news flow from the US and Europe, dealers said.

Goldman Sachs on Friday said it expected a sharp revenue decline for Indian IT companies.

"Under our hard landing scenario, we calculate revenue growth declining from 22 per cent to 13 per cent for the large caps (IT firms)," the Wall Street bank said. It expects margins of IT companies to compress by 170 bps, which translates to an EPS target of 3 per cent and EPS growth of 2 per cent for Infosys, TCS, HCL Technologies and Wipro.

Shares of Infosys Technologies, Tata Consultancy Services, Wipro, HCL Technologies were down by 2-3 per cent. At 3.15 p.m., BSE sensex was down 223.83 points at 16,835.57. TCS was down by around 3 per cent at Rs 948.30, while Infosys was at Rs 2,375.00, down 2.62 and Wipro stood at Rs 343.30, down 2.83.