Nifty IT index plunges 3.2%, posts biggest single-day fall in 3 months
· Business · Economic Times
The Nifty IT index dropped 3.2% on Wednesday, marking its sharpest single-day decline in three months. The sell-off was driven by renewed risk-off sentiment in Indian equities and growing concerns over potential US interest rate hikes. Analysts noted that rising geopolitical tensions and crude oil prices exceeding $100 per barrel are pressuring the sector by dampening expectations for US IT spending. Specific stocks faced significant downward pressure, with Coforge falling 5.4% and major players like Infosys, HCL Tech, and Tech Mahindra declining between 3.3% and 4.3%. Additional headwinds include rising H-1B visa costs and ongoing uncertainty surrounding the impact of generative AI on business models.
Why it matters
The downturn impacts Indian IT firms heavily reliant on US client spending, potentially affecting sector-wide revenue growth and stock market performance for investors.
Read the original report — Economic Times
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