Indian IT Shares Tumble as Nifty IT Drops 10% in Two Days Amid Global Tech Selloff
It stocks remained in red zone on Friday as well. Continuing its fall from previous trade session, the sector came under selling pressure as investors continue to remain worried about concerns over disruption from artificial intelligence and a slowing of expectations for an early US rate cut.
The Nifty IT index plunged sharply as heavy selling in Infosys, TCS, HCLTech, and Wipro dragged the sector to its worst performance in nearly 10 months amid AI disruption concerns.
The Nifty IT index dropped 4.59% or 1,520 points to trade at 31,639 at 9:50 am as most
technology counters weakened. Infosys shed 85 points or 6.13% to trade at 1,299 on NSE, while
TCS declined by 4.77% to 2,619. HCLTech and Wipro plunged 4.48% and 3.64% respectively,
while Tech Mahindra traded lower by 2.66%. Among the midcap stocks, Coforge plummeted
1,345 points or 5.32%, Persistent fell 3.16% to trade at 5,279, while LTIMindtree dipped by
3.62% to 5,023.
This is after the 10 IT stocks sell-off India Nifty IT index turned out to be the worst performing
sector on Thursday as well, falling near its lowest level in nearly 10 months and continues to
remain the weakest sector for this year so far.
In the American markets, American Depository Receipts of Infosys and Wipro receded sharply
and continued its losing streak for the second consecutive session. Infosys dropped as much as
10% to trade at $14.21 on NYSE while Wipro lost 5% to end at $2.28.
The sell-off comes after Nifty IT index witnessed a brutal session on Wednesday when it
plunged up to 5.5% and several blue-chips cracked as much as 6%, reported Economic Times.
Investors are viewing the decline as another signal that AI disruption fears could heighten
competition, crimp margins and eat into competitive advantages long enjoyed by IT services
providers, reported Economic Times.
