Top three IT firms taste loss in a fortnight due to COVID-19 outbreak
Amidst pandemic Coronavirus outbreak, IT firms too have to suffer the loss. Top three IT services firms of the country lost a combined market capitalisation (m-cap) of around $31 billion in the past fortnight as coronavirus continued to roil the stock market.
Given the global spread of the virus, the fall in m-cap is not limited to India as all global IT services majors, including IBM, Accenture and DXC Technology have also witnessed fall in their market capitalisation.
From March 2 until Tuesday (March 17), m-cap of India’s largest IT services player Tata Consultancy Services (TCS) dropped by Rs 1.45 trillion (around $21 billion) as investors sold their positions in anticipation of demand slowdown. Similarly, the country's second-largest IT firm Infosys saw its m-cap drop by around Rs 70,000 crore (around $7 billion) in the past fortnight to touch Rs 2.36 trillion. In case of Wipro, m-cap fell by around Rs 26,000 crore (around $3.7 billion) to touch Rs 98,902 crore on Tuesday.
According to global research firm Gartner, global spending on IT is likely to grow at 3.7% in 2020. However, with major countries shutting down establishment to contain the virus, demand slowdown has now become a reality.
“With the global spread of coronavirus, the IT industry, which is projected to grow at 5 percent this year, can also see negative growth. Now, the industry is likely to grow in -5 to +5 range. This has definitely spooked investors,” said Pareekh Jain, an IT outsourcing advisor and founder of Pareekh Consulting.
AWS digitally transforming CEAT with its IoT and Analytics
Amazon Web Services (AWS) has announced that CEAT LTD (CEAT) is using AWS to drive smart m...
Happiest Minds Technologies announces IDaaS MSSP solution powered by OneLogin
Happiest Minds Technologies has announced the launch of Identity Vigil 2.0, a ne...
Micro Focus’ CyberRes partners with Google Cloud for High-Scale secure cloud analytics
CyberRes, a Micro Focus line of business, announced a partnership with Google Cloud to sup...
NVIDIA to host GTC conference
NVIDIA announced that it will host its next GTC conference virtually from September 19-22,...
Crayon Software Experts India hosts Crayon Connect CIO Event 2022
Crayon Software Experts India has organized their flagship customer event, the Crayon Conn...
BPE Celebrates 22 years of Trust, Leadership & Success
Best Power Equipments (BPE) celebrated its 22nd anniversary on Saturday, 23 July 2022, at...
India Mobile Congress declares the schedule for 6th edition of the IMC
Hon’ble Minister of Communications, Electronics & Information Technology and Rai...