Growth jitters take a 'byte' out of TCS

Shares of Tata Consultancy Services (TCS), the country’s largest IT services provider, continue to remain under pressure, hitting a new eight-month low of ₹3,624.90 intraday on Tuesday before closing at ₹3,631, down 1.19 per cent. In the past two trading sessions, the stock price has declined 4 per cent on fears of a slowing US economy.

- DEEPAK KORGAONKAR

The stock, which is trading close to its 52-week low of ₹3,593.30 touched on June 1 last year, has underperformed the benchmarks as well as its peer index. In the past month, it underperformed the market by falling 11 per cent as compared with the BSE Sensex which was down 1 per cent and the BSE IT index which slipped 6.7 per cent.

Industries reliant on exports such as IT services, chemicals, and automobiles are struggling with slower global economic growth, supply chain disruptions, and pricing pressures.

The IT sector, a traditional growth driver, is witnessing weaker deal momentum and cautious client spending, while chemical exports are under stress due to lower global commodity prices and subdued international demand, according to Motilal Oswal Financial Services.