India's information technology (IT) software services body Nasscom has cut the revenue growth guidance for the financial year 2016-17 to 8-10 percent on Wednesday from 10-12 percent projected at the beginning of the fiscal.
The impact of the downward revision is likely to reflect in the share prices of IT companies when the markets open on Thursday since the announcement was made after market hours.
The BSE Information Technology index closed with a gain of 1.76 percent on Wednesday. Infosys was up 1.66 percent at Rs 940, TCS gained 3.21 percent to end at Rs 2,190 while Wipro lost 1.12 percent to close at Rs 443. Tech Mahindra ended 2.88 percent higher at Rs 443.
Read: Nasscom hints at lowering revenue guidance for FY 2017
Most of the IT software companies such as Infosys, Wipro and TCS had revised their revenue guidance or hinted at lower growth rate for the current fiscal due to global factors such as Brexit and the US presidential elections.
Earlier on November 10, brokerage Nirmal Bang Institutional Equities had said that additional restrictions on the visa by the US are a strong possibility.
"We also believe curbs on H1-B and L1 visas are more likely now than ever before. Previously, grid-locked Congress could not clear bills which sought to impose restrictions on Indian IT services firms. This visa issue may be more of a margin spoiler than a growth spoiler and is manageable," it said in a note.
