India’s Nifty IT index dropped 1% in early trade, weighed down by a sharp 7% decline in Wipro shares following weak quarterly guidance. The broader IT sector faced selling pressure, reflecting investor concerns over global demand softness, margin challenges, and cautious client spending in the technology services industry.
The Indian IT sector witnessed a downbeat start to the trading session, with the Nifty IT index slipping 1%. The decline was primarily driven by Wipro Ltd, whose shares tumbled 7% after the company issued weak Q4 guidance, projecting muted sequential growth in IT services revenue.
Other IT majors also traded lower, reflecting broader investor caution amid global macroeconomic uncertainties and subdued client budgets. Analysts noted that while long-term deal pipelines remain intact, near-term growth visibility is under pressure.
Key Highlights:
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Nifty IT Index: Fell 1% in early trade.
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Wipro Impact: Shares dropped 7%, dragging the sector lower.
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Sector Sentiment: Weak guidance from Wipro triggered selling across IT stocks.
Investor Concerns:
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Slower deal ramp-ups.
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Margin pressures due to global demand softness.
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Cautious client spending in technology services.
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Broader Context: IT sector remains sensitive to global economic trends and corporate budget cycles.
This development underscores the fragile investor sentiment in India’s IT sector, where earnings guidance and global demand outlook continue to shape market performance.
Sources: Reuters, NSE Market Data