Shares of Tata Consultancy Services (TCS) fell more than 1 per cent on Thursday a day after the company announced its September quarter earnings.

In late morning trade, the stock dived 1.62 per cent to Rs 3,551.25 apiece on the NSE. On the BSE, TCS shares declined by 1.6 per cent to Rs 3,552.60 per piece, emerging as the biggest loser among Sensex shares.

On Wednesday, TCS reported an 8.7 per cent year-on-year rise in net profit to Rs 11,342 crore in the September 2023 quarter and stated that the headwinds for the IT sector continue amid a sluggish economic climate. "Yes, there is uncertainty because of which clients are focused more on optimisation, which results in the older projects getting optimised or some of them getting passed or reprioritised, resulting in muted or moderated revenue growth," its chief executive and managing director K Krithivasan said.

TCS's revenue from operations rose 7.9 per cent year-on-year to Rs 59,692 crore in the reporting quarter from Rs 55,309 crore a year ago, the company said.

A weak commentary by TCS also triggered selling on other IT shares.

Infosys' shares dropped nearly 1 per cent ahead of its financial results to be announced later in the day.

On the NSE, Infosys stock fell 0.78 per cent to Rs 1,482.70 per apiece, while the scrip declined 0.74 per cent to Rs 1,482.60 per piece on the BSE.

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