Nifty IT Loses Rs 50,000 Crore In Market Capitalisation In 15 Minutes As TCS, HCLTech, Infosys Fall

The Nifty IT index has lost more than Rs 50,000 crore in market capitalisation within the first 15 minutes of trade on Tuesday, with the index trading with cuts of more than 2.5% amid weakening global sentiment towards the technology sector. 

HCL Technologies Ltd., Persistent Systems Ltd. and Oracle Financial Services Software Ltd. led the losses. HCL Tech fell 3.12% to Rs. 1,096.80, Persistent Systems declined 3.18% to Rs. 4,771.50, and Oracle Financial Services shed 3.27% to Rs. 9,160.50.

Infosys Ltd. dropped 2.99% to Rs. 1,111, Tech Mahindra Ltd. lost 2.47% to Rs. 1,442.30, and Coforge Ltd. fell 2.56%. Mphasis Ltd. slipped 2.45%, TCS declined 1.68% to Rs. 2,117.70, and Wipro Ltd. shed 1.30% to Rs. 176.60. The index was the biggest sectoral loser in early trade.

The carnage in Nifty IT can be linked to overnight weakness across global technology markets, with the Nasdaq Composite falling nearly 2% in Wednesday's US session, Hong Kong's Hang Seng slipping approximately 1%, and South Korea's KOSPI declining around 1.5%, reflecting broad risk-off sentiment against technology stocks globally.

The Nifty IT index has now fallen more than 5% in trade this week, with HSBC, in its latest note, pointing to a cautious sentiment in the sector, adding that accelerated M&As done by the IT companies may actually prove to be an incremental risk in the medium term. 

It adds that AI deflation is here and will continue to eat away the bulk of incremental tech spend, thereby rendering anaemic growth for another six to eight quarters. HSBC expects the sector to bottom out in terms of valuation at 13-14x price to earnings, with growth expected to pick up from FY29 onwards.

ALSO READ: Infosys, TCS, HCLTech Lead Nifty IT Lower; Index Sheds More Than 2% Amid Global Tech Selloff

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