- Shares of major Indian IT firms fell amid AI disruptions and high valuations on Aug 18
- Sensex dropped 0.5% to 77,362.19 and Nifty 50 fell 0.3% to 24,200 on weekly expiry day
- Weak revenue forecasts from global tech firms and cautious corporate spending pressured IT stocks
Shares of Indian information technology (IT) heavyweights such as Tata Consultancy Services (TCS), Infosys Ltd., Wipro, HCL Technology Ltd. among others in the Nifty IT pack are trading lower in early trade on Tuesday, Aug. 18, after AI-led disruptions and high valuations spooked investors amid a bearish market sentiment. This comes on the weekly expiry day for futures and options (F&O) when volatility is higher compared to other trading sessions. Amid these triggers, Indian equity benchmarks Sensex and Nifty 50 opened lower earlier today, extending losses for the sixth consecutive session.
The NSE Nifty 50 fell 0.3% to 24,200. The BSE Sensex fell 0.5% or 365.9 7 points to 77,362.19. Domestic brokerages had highlightted earlier that IT stocks are falling primarily due to weak revenue forecasts from global tech bellwethers such as Accenture, cautious corporate tech spending, and the disruptive threat of generative artificial intelligence (AI) to traditional outsourcing models. High sector valuations and global macroeconomic uncertainties continue to impact tech counters. This, combined with external triggers such as the ongoing geopolitical conflict in the Middle-East, weighs on investor sentiment.
Nifty IT Index Intraday
On Tuesday, shares of India's largest IT major TCS opened at Rs 2,300 against a previous close of Rs 2,313 and pared gains to hit an intraday low of Rs 2,284.19 apiece on the NSE. The stock last traded 1.6% lower at Rs 2,288.20 apiece on the NSE. This compares to a 0.30% decline in the Nifty 50 benchmark. Similarly, shares of Infosys last traded 1.82% lower at Rs 1,119.20 apiece on the NSE. Shares of Wipro amd HCL Tech each logged declines in the range of 1-2% so far during the session.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.