IT giant Tata Consultancy Services (TCS) has delivered on street’s elevated expectations but this time around there is no earnings rerating, something that was seen in the prior two quarters and after the run-up that the entire sector has seen, it has come in for profit taking.
In fact, mapping on as to how much these IT majors have fallen from their recent peak, and on an average IT stocks have fallen close to 10 percent.
The one that’s fallen the least is Infosys where there is also buyback support that the street is watching for. So, consequently, valuations for IT companies after profit taking have also come off, for example, since TCS is in focus, its recent peak valuations were close to 31.5-32 times and with today’s correction it has come down to 29 times.
Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.