Tech Mahindra shares have slumped after the company was downgraded by Hong Kong based agency CLSA.
Tech Mahnindra Stocks Slump
The Pune-based company’s shares, which started on a cautious note, quickly slumped. Despite recovering a little, the company shares continued to trade in red in the early hours of the day’s trade on Wednesday, August 21.
CLSA downgraded the tech company’s stocks to ‘Hold’. The rating agency shunted the target to Rs 1,670 per share. In its global outlook, the agency focused on the sluggish pace of capital expenditure in the telecom sector and also said that enterprise 5G commercialisation is still at a distance.
In addition, outlook also suggested that Tech Mahindra may face multiple near-term challenges in its telecom vertical. Tech Mahindra has not announced any major deals, unlike its competitors in the Indian sector, including Infosys, TCS and Wipro.
On Wednesday, August 21 at 10:43 IST, the Tech Mahindra stocks declined by 0.41 per ent or Rs 6.60, taking the overall value of the stocks to Rs 1,622 per share. This is lower than the CLSA target.
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A Look At Other IT Shares
TCS Stocks in Red
When we look at the other key stocks, they, despite any downgrade, do not appear to be doing that well after all. The aforementioned TCS also appear to be trading in red. The Mumbai-based tech company’s shares dropped by 0.18 per cent or Rs 7.95, taking the overall value down to Rs 4,515.35 per share.
Infosys achieves marginal gains.
The Bengaluru-based Infosys was trading in green, but with very marginal gains of a meagre 0.0080 per cent. The share price stood at Rs 1,872.35 per share.
Indian IT Stocks: Nifty IT Index Surges 2.89%; TCS, Infosys, And Wipro Lead GainsWipro stocks also see red.
Another Benagluru-based IT-giant., Wipro, also saw its shares drop, with a marginal decline in prospects. Wipro lost its value by 0.095 per cent or Rs 0.50, taking the overall value to Rs 524.15 per share.
