Tata Consultancy Services, the country’s largest information technology services provider, has revoked a dismissal letter issued to a female employee and so informed the Madras High Court.

Last week, the HC had issued an interim injunction to restrain TCS from implementing the order for four weeks.

Mumbai: It started innocuously, on 11 December, at a Tata Consultancy Services Ltd (TCS) press conference in Bengaluru, an annual event to announce the number of new employees TCS would be hiring.

The moment Ajoy Mukherjee, executive vice-president and global head (human resources) at TCS, mentioned the words ‘restructuring’ and ‘layoffs’, the focus shifted. Mukherjee’s other statements, although reported, didn’t. Statements such as these: This is a year-long process. It happens every year. This is for senior and mid-level executives who the company believes are non-performers.

The earnings of Tata Consultancy Services (TCS) for the quarter ended December last year met industry estimates but failed to impress analysts, unlike the earnings of its peer, Infosys.

TCS’ net profit and revenue narrowly missed the Bloomberg consensus estimates of Rs 5,493 crore and Rs 24,534 crore, respectively. The company paid 100 per cent variable pay, which might have hit its profit for the quarter.

Markets pared early gains in late morning trades as investors booked profit at higher levels after reports suggest that retail inflation is likely to be on the higher side. The government will detail November IIP and December CPI data later today.

At 11:40AM, the 30-share Sensex was down 22 points at 27,436 and the 50-share Nifty was trading flat at 8,285.

Benchmark share indices came off their early highs amid profit taking in select index heavyweights even as Tata Group shares continued to trade higher.

At 10:30AM, the 30-share Sensex was up 193 points at 27,468 after hitting an intra-day high of 27,508 and the 50-share Nifty was up 55 points at 8,290 after touching 8,303 in early trades.

Markets opened marginally higher with infrastructure stocks leading the gains after the government paved the way for easing the land acquisition Act for public-private partnership and rural infrastructure projects.

At 9:35AM, the 30-share Sensex was down 23 points at 27,372 and the 50-share Nifty was trading 6 points lower at 8,240.

Despite positive signs from most quarters, the Indian information technology (IT) services sector might see problems across some business verticals in 2015, clouding client spending during the year.

Among other things, some experts have concerns on banking, the largest vertical for most Indian IT service companies. There are concerns around large banks incurring heavy fines in the US, brokerage firm Motilal Oswal said in a report earlier this month. Additionally, several of the top 10 clients in the banking space in the US are looking to set up captive units and lower their exposure to outsourcing, which could further hit Indian IT services firms. Sectors such as retail and energy, growing at a strong momentum in recent quarters, might also see some slowing. Retail is anticipated to grow slower as the budget of clients in this sector depends heavily on the success of festive season sales – these have not done very well, Motilal Oswal said. Also, the sharp decline in oil prices is seen affecting energy companies negatively.

Markets opened higher, amid firm global cues, with bank and IT shares leading the gains in early trades.

At 9:30AM, the 30-share Sensex was up 269 points at 27,395 and the 50-share Nifty was up 77 points at 8,236.

Having remained the largest private sector employer for decades, the Indian information technology (IT) services sector is perhaps set for a change as three of its largest companies — Tata Consultancy Services (TCS), Infosys and Wipro, have remained slow on hiring in the past few years, hinted at bottom fishing of workforce and ‘restructured’ their senior-level staff.

According to experts, the shift in technology landscape and the resultant change in demand from clients is the major reason for this swing.

Benchmark indices are trading lower, amid weakness in their Asian peers, dragged by losses in information technology and oil shares. Further, contraction in Index of Industrial Production for October to 4.2% also dampened sentiment.

At 9:30 AM, the 30-share Sensex was down 121 points at 27,241 and the 50-share Nifty was down 28 points at 8,196.

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