Indian IT stocks sunk to a seven-month low on Friday and are set to register the worst monthly fall in nearly three years. The selloff came after tech stocks in the US took a beating following Nvidia Inc.'s fourth-quarter earnings and commentary that failed to enthuse investors accustomed to sporadic AI-fuelled gains. The Jensen Huang-led chipmaker sank 8.5%.
Nasdaq 100 fell 2.8% on Thursday, to its lowest level since November 2024.
Nifty IT fell 4% intraday, sparking a loss of Rs 1.25 lakh crore. The relative strength index stood at 19, indicating an oversold territory.
The index has been falling for seven straight sessions as heavy selling in technology stocks continued, amid concerns over a slowing US economy, which piles pressure on domestic software exporters.
On the index, mid-cap IT companies fared worse than their larger peers. All 12 constituent stocks fell.
Tech Mahindra Ltd. was the top loser, with the stock down 5.4%. Mphasis Ltd. and Persistent Systems Ltd. shares also fell 5%.
Industry leader Tata Consultancy Services Ltd. dropped 3.5% to hit a 52-week low of Rs 3,475.
Nifty IT index has already declined 12.4% this month, compared to 5.3% fall in the benchmark Nifty 50. The last time the IT gauge sunk more than 12% was in April 2022.
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