Shares of Tata Consultancy Services fell as Q1 profit misses estimates.
The stock was the top percentage loser on the NSE index. It fell as much as 2.9 per cent in early trade.
The software services provider's consolidated Q1 net profit fell 6 per cent. The net profit missed estimates as stronger rupee hit the company's revenue.
With margins under pressure owing to rupee appreciation and other factors, TCS' earnings are likely to decline in FY18, according to Morgan Stanley analysts.
Nomura analysts reiterate “reduce” rating. They say margin pressure and “expensive” valuations will weigh on the stock.
Nomura has cut the price target to Rs 2,180 from Rs 2,200.