Shares of IT majors Tata Consultancy Services (TCS) and Infosys fell around 2 percent intraday Wednesday on buzz of a US-based retail giant’s plans to cut outsourcing contracts to Indian firms. According to a media report, JC Penney is planning to reduce its outsourcing projects to companies such as TCS and Infosys. The retail firm reportedly gives software business worth billions of dollars every year to Indian IT firms. Meanwhile, both the IT firms were in the news recently for developments related to the top management. TCS earlier this week saw a new CEO take over after N Chandrasekaran was elevated to lead Tata Sons. The company also approved a mammoth share buyback worth Rs 16,000 crore for 5.6 crore equity shares. Infosys had been facing allegations regarding irregularities in Infosys’ acquisition of Panaya in February 2015. Infosys chief Vishal Sikka on February 21 lashed out at detractors for spreading ‘false and malicious stories’ and targeting him. Infosys has lost over a percent in the past three days, while TCS has gained over half a percent in the same period. At 13:09 hrs, Infosys was quoting at Rs 988.75, down Rs 24.20, or 2.39 percent, on the BSE. It touched an intraday high of Rs 1,015.00 and an intraday low of Rs 988.25. Meanwhile, At 13:10 hrs Tata Consultancy Services was quoting at Rs 2,423.30, down Rs 41.00, or 1.66 percent on the BSE. It touched an intraday high of Rs 2,471.45 and an intraday low of Rs 2,420.00.
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