The Indian Information Technology sector was dragged down by a broad-based selloff in the equity market amid bearish trader sentiment on Monday, with major IT stocks like Tata Consultancy Services Ltd., Infosys Ltd., and Wipro Ltd. shedding up to 2%.
The domestic equity market extended its decline on Tuesday, with the benchmark indices falling nearly a percent each to six-month lows, as selloff intensified in banks, IT, metals and auto stocks.
Infosys and L&T Technology Services Ltd. fell as much as 2%; HCLTech and Wipro slid 1.72% and 1.84% each, while TCS tumbled 1%. As of 11 a.m., the scrips pared some of the losses to trade between 0.9% and 1% lower.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The IT sector has fallen 26.54% year-to-date and 17.4% in the last 12 months. It has also shed around Rs 21,991.60 crore in market capitalisation.
Stock Market Crash
The Nifty 50 fell 186 points, or 0.82%, to 22,605.60, while the Sensex dropped 693 points, or 0.94%, to 72,087.62, as of 9:39 am. Barring Pharma, all sectoral indices are in the red, with Media and Financial Services leading the losses. Nifty Bank is trading below its 3 month low.
Here are the top triggers for the stock market crash:
Global Market Cues
The Dow Jones Industrial Average had declined 347.11 points, or 0.67%, to 51,481.51, while the S&P 500 shed 59.72 points, or 0.77%, to 7,683.69. The Nasdaq Composite closed 248.34 points, or 0.92%, lower at 26,820.38.
Asian markets traded lower on Tuesday, following overnight losses on Wall Street. Japan's Nikkei 225 fell 0.79%, while the Topix declined 1.55%. South Korea's Kospi dropped 0.41%, and the Kosdaq slipped 1.03%. Hong Kong's Hang Seng index futures indicated a higher opening.
Oil On The Boil
Oil prices extended gains for a second session, with Brent crude holding above $106 a barrel and West Texas Intermediate approaching $94, as uncertainty around US-Iran negotiations outweighed the partial restoration of flows through Saudi Arabia's key East-West pipeline. The market is weighing two competing forces: the prospect of more supply returning through Saudi Arabia and the continued uncertainty around the Strait of Hormuz.
Treasury Yields
US Treasury yields continued their rally on interest rate hike concerns. The benchmark 10-year Treasury note yield ended above 5.2%, near levels not seen since 2007. The 30-year topped 5.56%, trading around a 2004 high.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
