The Nifty IT index extended its losing streak for the sixth consecutive session on February 27, as heavy selling in technology stocks continued amid concerns over a slowing US economy.
Nine of the ten constituents of the IT index traded in the red, with Wipro being the only gainer, rising over half a percent on the back of its latest bet on startups.
The IT index has slipped over 6 percent since its downward trend began on February 19. Markets were shut on February 26 for Mahashivratri, and upon reopening, the selloff in IT stocks resume.
Investor sentiment took a hit after US data released on February 21 showed consumer sentiment falling to a 15-month low in February, while inflation expectations climbed, partly driven by proposed tariffs under President Donald Trump’s policy outlook. Business activity in the US also showed signs of weakness, raising fresh concerns over the global economic outlook.
With the US being a key revenue driver for India’s IT sector, the deteriorating economic indicators weighed on export-oriented IT stocks.
Mphasis led the decline, tumbling 3.79 percent to Rs 2,360 per share on the NSE. The stock has been on a losing streak for the past four sessions, shedding over 10 percent in the period. Coforge and L&T Technology Services followed, dropping 2.79 percent and 2.14 percent, respectively.
Heavyweights Tata Consultancy Services (TCS), Infosys, and HCL Technologies also faced selling pressure, falling 0.81%, 0.93%, and 1.27%, respectively.
Adding to the worries, analysts flagged the risk of stagflation in the US—an economic scenario marked by slowing growth and rising inflation—which could further dampen global business prospects already under strain.
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