Nifty IT Index Recovers Partially, Still Down 1%

The Nifty IT index, which had plunged over 4% in early trade, managed to recover some ground by the end of the session, finishing 1% lower. The rebound was driven by selective buying in mid-tier IT stocks, though frontline players like Infosys and TCS remained under pressure.

Global cues weighed heavily on sentiment, with U.S. tech stocks sliding amid inflation concerns and delayed Federal Reserve rate cut expectations. Additionally, investor anxiety over artificial intelligence reshaping traditional outsourcing models continued to dampen confidence in Indian IT majors.

Key Highlights

• Index Performance: Nifty IT closed 1% lower after paring steep early losses.
• Major Decliners: Infosys fell 6–7%, TCS dropped 6%, and HCLTech slipped over 3%.
• Mid-Tier Resilience: Selective buying in companies like Tech Mahindra and Mphasis helped limit losses.
• Global Pressure: Weak Nasdaq performance and U.S. inflation concerns dragged sentiment.
• Structural Concerns: AI-driven disruption fears continue to weigh on IT outsourcing models.

Final Note
While the Nifty IT index managed to reduce its losses, volatility remains high. Investors are closely watching global tech trends and AI developments, which could shape the sector’s near-term trajectory.

Sources: BusinessLine, Economic Times, Business Upturn, BusinessToday