Shares of Tata Consultancy Services (TCS) fell around 2% after it announced its fourth-quarter results, even though the company reported steady growth.
For the March quarter, TCS posted a rise in profit and revenue compared to last year. The company also announced a final dividend, showing confidence in its financial health.
However, the market reaction was muted. Investors seemed more focused on future growth rather than past performance. Concerns about slower demand in key sectors, especially banking and financial services, weighed on sentiment.
Brokerage firms gave mixed views. Some remained positive, highlighting strong deal wins and a healthy order pipeline, which could support growth in the coming quarters. Others were more cautious, pointing to possible pressure on margins and slower growth ahead.
Another area of concern is the impact of artificial intelligence (AI). While AI offers long-term opportunities, it is also changing the way IT services are delivered, creating some uncertainty in the near term.
The weak sentiment was not limited to TCS. Shares of other IT companies also came under pressure, reflecting broader concerns in the sector.
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