TCS Shares Dip Amid Q1 Earnings and Market Unrest

Tata Consultancy Services' shares dropped over 2% after its June quarter earnings underwhelmed investors. The report showed a 6% profit rise, yet demand contraction, driven by geopolitical uncertainties, restrained enthusiasm. Additionally, other IT stocks, including Infosys and Wipro, saw negative trends.

Tata Consultancy Services (TCS) experienced a 2.51% drop in shares on Friday morning following an unremarkable June quarter earnings report that left investors unimpressed. The stock fell to Rs 3,300 on the BSE and to Rs 3,297 on the NSE.

Other IT companies such as Infosys, Tech Mahindra, HCL Tech, and Wipro also faced selling pressure. The broader equity market mirrored this trend, with the BSE Sensex trading 352.91 points lower at 82,837.37 and the NSE Nifty down by 91.45 points at 25,263.30.

Despite a 6% rise in net profit to Rs 12,760 crore, largely due to increased non-core income, geopolitical uncertainties have dampened demand, according to TCS's managing director, K Krithivasan. A one-time tax write-back contributed to the climb in other income, yet significant headwinds remain on the horizon.

(With inputs from agencies.)