IT stocks fall,defy broader-market rally

Similarly,Infosys’ shares dropped by 1.07 per cent,while Wipro lost 2.67 per cent.

The shares of domestic IT firms fell on the back of Oracle’s second-quarter financial results missing the market expectations. This raised the concerns that the IT companies across the world could be affected in the wake of declining technology budgets of the corporates due to economic slump.

Among other IT firms back home,Patni Computer,HCL Technologies,Mphasis,Rolta India and Oracle Financial Services Software saw fall in their share prices.

As a result,the BSE IT index was the worst performer among the 13 sectoral indices and closed 1.20 per cent lower.

Analysts said sentiments turned adverse for the IT stocks after Oracle’s results came below market expectations.

“Lower than expected results renewed fear of lower IT spends in the wake of slower economic growth,” Bonanza Portfolio’s Shanu Goel said.

Oracle’s stock was today trading lower by 11 per cent.