Punters exit TCS stock in droves

The TCS stock fell a whopping 6.7% to Rs 578 on Tuesday while in intra-day trading, it touched a 52-week low of Rs 567. Analysts at foreign brokerage houses point out that TCS generated nearly 43.6% of its consolidated FY08 revenues of $5.63 bn — approximately Rs 23,944 crore — from the banking, financial and insurance sector (BFSI).

In addition, TCS’ exposure to the financial sector in terms of generating revenues is the highest amongst the top 5 Indian IT companies, with Satyam at the lowest.

And given the current uncertainties in the global financial system due to the collapse of several iconic American and European institutions, market sources point out that punters are exiting from stocks like TCS in droves.

Also Read: Why TCS n Satyam hit 52 week lows?

Punters on the Street point out that all eyes will be on this IT company’s quarterly results that will be announced shortly, in a bid to understand the impact of a possible slowdown in IT spending in USA on players, including TCS, which would be key to the future direction of TCS’ stock price.