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TCS takes heavy beating on revenue growth concerns-news18032012

Monday, March 19, 2012

Tata Consultancy Services (TCS) fell by 5%, touching the monthly low of Rs1,112. So far, over 1.69 lakh shares have traded on the BSE as against the two-week average volume of 1.02 lakh shares.

TCS was cautious on the dollar revenue growth projection in the fourth quarter of this fiscal (ending March 2012) in an analysts' meet on March 13. Margin performance could dampen investor expectations in result season, the company said. Delay in decision marking in January-February is leading to deal closures in March. Uncertainty in December-February is likely to drag down growth rate in Q4, the company said.

Other frontline stocks - Wipro down by 1% and Infosys down by 1.60%.

Analysts were also concerned with the higher work visa rejection rates. The rejection rate has gone up from 7% in 2007 to 22% in 2010 and 27% in 2011. A part of the increased denial rates to the slowdown in the global economy.

With US Presidential elections around the corner, the noise around visas & protectionism is likely to go up, Analysts said.
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