New Delhi: IT stocks were hit Friday on growing concerns that a weaker global economy would hit IT spending. The rupee's weakness against the dollar, which helps Indian IT exporters, also failed to lift the sentiment in these stocks.
The rupee traded nearly 30 paise lower against the greenback today. The IT index was the biggest underperformer on the BSE. It traded with over 1 per cent losses, the most among all other groups of stocks.
Infosys, India's second biggest software services exporter was down 1.4 per cent, while Tata Consultancy Services declined 1.16 per cent.
Vivek Mavani, independent market analyst & portfolio manager told NDTV that IT stocks will be driven by what happens in the US and Europe in terms of IT spends rather than what happens in the rupee.
On Wall Street on Thursday, the Nasdaq composite index fell 0.5 percent to 2,831.02.
US Federal Reserve Chairman Ben Bernanke deflated hopes of an immediate action to jump-start growth in the world's No. 1 economy. Bernanke avoided sending any signals in an appearance before members of the US Congress about what the Fed might do in response to a slowdown in hiring. Just 69,000 jobs were created in May, the fewest in a year.
Though Bernanke didn't pledge any new Fed measures, but he didn't rule out future actions either. He said Fed officials would closely examine the latest economic developments when they next meet on June 19-20.
Investor concerns remained focused on Europe, where a lingering financial crisis has now infected Spain and its deeply troubled banks.
Global investors are worried that the recession-hit country can't come up with the money needed to save its banks without bankrupting the government. Expectations are rising that Spain's leaders will have to seek an international bailout for banks crumbling under the weight of bad real estate loans.
Spain's borrowing costs have soared close to the level that forced the governments of Greece, Portugal and Ireland to seek financial rescues. As much as 100 billion euros ($126 billion) may be needed to bolster Spanish banks, the credit rating agency Fitch said Thursday.
(With inputs from AP and Reuters)
The rupee traded nearly 30 paise lower against the greenback today. The IT index was the biggest underperformer on the BSE. It traded with over 1 per cent losses, the most among all other groups of stocks.
Infosys, India's second biggest software services exporter was down 1.4 per cent, while Tata Consultancy Services declined 1.16 per cent.
Vivek Mavani, independent market analyst & portfolio manager told NDTV that IT stocks will be driven by what happens in the US and Europe in terms of IT spends rather than what happens in the rupee.
On Wall Street on Thursday, the Nasdaq composite index fell 0.5 percent to 2,831.02.
US Federal Reserve Chairman Ben Bernanke deflated hopes of an immediate action to jump-start growth in the world's No. 1 economy. Bernanke avoided sending any signals in an appearance before members of the US Congress about what the Fed might do in response to a slowdown in hiring. Just 69,000 jobs were created in May, the fewest in a year.
Though Bernanke didn't pledge any new Fed measures, but he didn't rule out future actions either. He said Fed officials would closely examine the latest economic developments when they next meet on June 19-20.
Investor concerns remained focused on Europe, where a lingering financial crisis has now infected Spain and its deeply troubled banks.
Global investors are worried that the recession-hit country can't come up with the money needed to save its banks without bankrupting the government. Expectations are rising that Spain's leaders will have to seek an international bailout for banks crumbling under the weight of bad real estate loans.
Spain's borrowing costs have soared close to the level that forced the governments of Greece, Portugal and Ireland to seek financial rescues. As much as 100 billion euros ($126 billion) may be needed to bolster Spanish banks, the credit rating agency Fitch said Thursday.
(With inputs from AP and Reuters)
