After a sharp fall, Indian equity benchmarks rebounded on Tuesday, but the Nifty IT index was among the few indices that was in the red, down nearly 4%. Sector major Tata Consultancy Services (TCS) reported March quarter earnings, which were in-line with expectations, yet the stock fell 5% intraday on the NSE on Tuesday. As pointed out in this column, expectations around TCS’ earnings were running high and valuations would have sustained only if the company would have beaten earnings estimates by a decent margin.
When TCS sneezes, all IT stocks catch a cold
