Shares of HCL Technologies Ltd slumped nearly 7% in Friday's intraday session following the news that the constant currency revenue growth of the IT major in FY23 will be at lower end of 13.5% -14.5%.
According to media reports, in an ongoing US analyst meet, the company said that the growth of FY23 in constant currency terms is going to come at the lower end of their guided band of 13.5-14.5% on the back of volatile macros and higher furloughs in Q3FY23.
In mid-October, when the company reported its Q2FY23 earnings, the management had upgraded their guidance to 13.5-14.5%, from previous guidance range 12-14%.
The stock is trading at high volume of 7.4 million with price loss of 6.56, and over a week the stock has fallen by 9.6%. The stocks' weekly average delivery volume is 66.94%.
"After rallying for the consecutive ten weeks, the stock turned lower. Further, correction till 1,000 level is possible. Indian and US IT indices have retreated off the resistance zone," said Amit Trivedi, market analyst, assistant vice president - technical and derivatives research at Yes Securities.
Nifty IT Index
Further, the news of the downgraded outlook from the IT giant's management also dented the sentiment amongst other IT majors. The Nifty IT index was down 2.65%, on Friday.
Infosys, Mphasis, Tech Mahindra, Persistent Systems, Wipro, Tata Consultancy Services, L&T Technology Services, Coforge were down 1-3.2% in Friday's intraday session.
According to analysts, the Nifty IT index is likely to remain under pressure in the near term, and an major upside is unlikely.
According to Mintgenie poll, 39 analysts recommend ‘buy’ rating for the stock.