Indian IT stocks fall after JP Morgan flags earnings slide

Mphasis

14/06/2023 07:17

** India's information technology (IT) index  .NIFTYIT 
slips as much as 0.8% and is top sectoral loser 
    ** Slide after JP Morgan reiterates negative view across IT
services universe, expects all IT firms to miss Street
expectations in June qtr and 2H of FY24 as discretionary
spending falls
    ** Places Infosys Ltd  INFY.NS , Tata Consultancy Services
Ltd  TCS.NS  and Mphasis Ltd  MBFL.NS  on negative catalyst
watch
    ** Downgrades Persistent Systems  PERS.NS  to "underweight"
from "neutral", cuts earnings by 3%-4% over FY24-FY26
    ** PERS TP cut to 4,100 rupees from 4,200 rupees
    ** Flags high exposure to discretionary spends at 83% for
PERS compared to 40%-75% for its peers; finds co's valuations
expensive
    ** All 10 constituents of IT index log losses, with PERS
leading decline, losing as much as 3.54% 
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))