- Nifty IT index fell 0.36% in early trade, ending a two-session winning streak
- Index traded between 27,289.10 and 27,502.60, about 40% below its all-time high
- Large-cap IT stocks like TCS, Infosys, and Wipro traded lower, weighing on the index
The Nifty IT index fell in early trade on Monday, snapping a two-session winning streak as selling in large-cap technology stocks outweighed gains in select mid-cap names. The index remains about 40% below its all-time high despite improving sentiment around the upcoming earnings season and lower market volatility.
The index briefly climbed above the previous session's close before turning lower. It touched an intraday high of 27,502.60 and a low of 27,289.10. It was trading at 27,340.90, down 0.36%, during the session.
The decline came after a recent rebound in the sector. The recovery had been supported by expectations for the Q1 FY27 earnings season, easing market volatility with India VIX at multi-month lows, and strength in the broader market. The sector had also recovered after the Nifty IT index fell to near multi-year lows last month, partly following Accenture's guidance revision.
Large-Cap IT Stocks Weigh On Index
Most frontline IT stocks traded lower, limiting the index's gains.
Coforge was the top gainer, rising 1.11%, followed by Persistent Systems, up 0.53%. Oracle Financial Services Software, Latent View Analytics and Hexaware Tech also traded in positive territory.
On the downside, Zensar Technologies declined 5.93%, making it the biggest loser in the index. Sonata Software fell 2.10%, while KPIT Technologies dropped 1.58%. Newgen Software Technologies, Birlasoft, Tata Consultancy Services, Wipro, Tata Elxsi, Happiest Minds Technologies, Infosys, Tech Mahindra and HCL Technologies also traded lower.
F&O Positioning Indicates Cautious Approach
Futures and options data showed open interest changes across several IT stocks even as the sector recovered from last month's lows.
Among large-cap names, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, Tech Mahindra, Coforge, Persistent Systems, Oracle Financial Services Software and LTIMindtree featured in the derivatives activity. The positioning comes as investors assess the outlook for the Q1 FY27 earnings season following the sector's recent correction.
The recent recovery in the IT index has been supported by expectations of quarterly earnings, lower market volatility and improved sentiment across the broader market. Monday's decline, however, interrupted that rebound as losses in heavyweight stocks offset gains in a handful of mid-cap technology companies.
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