Indian stock markets witness a decline on Tuesday, June 6, with the Nifty IT index being the most affected. The index fell by more than 2%, surprising traders. This decline in IT companies is due to weak demand and reduced revenue estimates from EPAM Systems, a well-known American IT company. EPAM Systems has reduced its revenue estimates from $1.16 billion to $1.17 billion for the current quarter. The company has also reduced its earnings per share (EPS) estimates from $2.33-$2.40 to $2.38-$2.46. Previously, EPAM Systems had estimated revenue to be between $1.19 billion and $1.20 billion, with EPS of $2.38-$2.46.
EPAM’s CEO and President, Arkadiy Dobkin, said that after the company’s earnings call for the first quarter, they noticed that their clients were more cautious about spending, especially in the IT service’s “build” segment. After evaluating the estimated data of May and June, the company expected deals to come at slower rates and a decrease in revenue from the previous quarter. This message from EPAM Systems has affected IT companies in the Indian market.
The Nifty IT index was trading at 28,546, down 2.37% with nearly all companies showing a decline. Mid-cap IT shares were the most affected, with Persistent Systems and Mphasis falling by more than 4%. Coforge, Tech Mahindra, and L&T Tech Services also faced significant losses.
Analysts from Kotak Institutional Equities said that the impact of a decrease in demand would also affect Indian IT companies. Delays in decision-making by clients and cuts in discretionary spending would impact the growth of IT companies. The analysts also expect revenue from companies they cover to be weaker in the June quarter than the March quarter. They believe that the financial services and technology sectors are particularly affected by weak demand.
In conclusion, the Indian stock market is facing a decline on Tuesday, June 6, with the Nifty IT index being the most affected. This decline is due to weak demand and reduced revenue estimates from EPAM Systems, which has affected IT companies in India. Analysts expect the impact of a decrease in demand to affect the growth of Indian IT companies.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
