Rating agency Standard & Poor's (S&P) Wednesday revised outlook for three top Indian information technology companies -- Infosys, Tata Consultancy Services (TCS) and Wipro -- to negative from stable.
At the same time, it affirmed it 'BBB+' long-term corporate credit ratings on these entities.
"Our ratings on Indian information technology companies reflect our 'BBB+' transfer and convertibility (T&C) assessment of India. We could lower the ratings on these companies if we revise downward our T&C assessment," S&P said in a statement.
At the Bombay Stock Exchange, the Infosys scrip ended flat at Rs.2,348.80 while TCS closed 1.92 percent down at Rs.1,172.30.
The scrip of India's third largest IT company fell 7.29 percent at Rs.410.15 after it reported muted guidance for the April-June quarter.
The outlook revisions followed a similar action on the sovereign credit rating on India by the agency which warned of a ratings downgrade citing deteriorating economic indicators and slow progress on fiscal reforms in the backdrop of a "weakened political setting".