It seems that pain is not yet over for the markets in general and IT pack in particular. Markets have been reeling under pressure along with global peers for over two weeks now on account of subprime shock waves coupled with Yen carried trade. IT stocks were also hit along with other sectors but one factor, which went in favour of IT companies in last few day was slight depreciation of rupee against US dollar. Rupee depreciated by around 1.5% from its recent lows. (Rupee had appreciated around 10% in last 6 months).

After a short-lived relief rally yesterday, markets once again fell flat on its face in line with its Asian peers and the recent political stalemate in Delhi on the Indo US nuclear deal compounded the woes of the markets.

Analysts across the financial services have started factoring the exposure of IT companies to the BFSI for their valuations before estimating Q2 earnings in the wake of subprime mortgage issue in US. This has added insult to already injured IT companies leading to sharp decline in their prices and most of the IT stocks are trading near to their 52 week lows.

IT major Infosys has fallen Rs 678 or 27.8% from its 52 week high and ended today at Rs 1761 close to its 52 week low of Rs 1723. Satyam, Mphasis and Rolta India have been relatively hit lesser than their peers. I-flex has got the maximum BFSI exposure and so it has fallen maximum i.e 55% from its 52 week high. It has got 100 exposures in the BFSI segment.