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Shares of software major Tata Consultancy Services (TCS) today plunged over 5 per cent in morning trade even as the company posted 18.26 per cent rise in profit for the third quarter.
After starting the day on a bearish note, the stock further lost 5.18 per cent to touch an early low of Rs 1,047 on the BSE. On the NSE, the scrip fell 5.31 per cent to Rs 1,045.30.
Later, the scrip was trading down by 3.2 per cent at Rs 1,068.95 on the BSE and was trading lower by 3.14 per cent at Rs 1,069.30 on the NSE.
In a highly volatile broader market, where the benchmark Sensex was trading on a flat note, TCS was the worst performer among the 30-Sensex blue-chips in the morning trade.
The company’s net profit increased to Rs 2,802.77 crore for the quarter ended December 31, 2011 from Rs 2,301 crore in the year-ago period, largely meeting street expectations.
Experts said the sluggish management commentary on the challenging quarter ahead and muted volume growth led to the decline in the stock.
“TCS management has remained confident of the demand environment until now (despite cautious outlook by peer Infosys). However, the weak macro environment has finally caught up the management commentary,” Emkay Global Financial Services said in a report.
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