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After IT bellwether Tata Consultancy Services (TCS) and Tata Elxsi posted their Q1 earnings in the previous session - the sentiment turned worrisome for the entire IT pack. In the previous session, Nifty IT index ahead of the Mumbai-based IT major's earnings later in the day ended lower with all but 8 stocks in the red.

Amid the weak sentiment,  American Depository Receipts or ADRs of Infosys as well as Wipro fell by more than 4 per cent.

TCS in the previous session after market hours posted weak Q1 results on expected lines. On the profit front, consolidated net profit increased over 6 per cent during the review quarter to Rs 12,760 crore in comparison to Rs 12,040 crore in the same quarter of the previous year. 

The new services segment of the company logged good growth.

The company's revenue came in lower-than-expected to Rs 63,437 crore, amid cautious client spending as well as tariff uncertainty. The company's constant currency (CC) revenue declined 3.1 per cent on-year.

The IT company's management commentary has not been so confident.

The company's margin was at 24.5 per cent on the operational front.

Zee Business Managing Editor Anil Singhvi expects the stock to fall by 2-3 per cent more and futher there is seen more impact on Infosys and Wipro ADR. This he expects even as he see weak TCS' results already priced in.

Will weak TCS earnings drag markets lower?

The expert held that 25,125-25,275 is the last support range and below it there will be signs of further downside. The analyst sees resistance at 25,550-25,650. 

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