Nifty IT Falls Most This Week, Snaps Two-Day Winning Streak
Barring L&T Technology Services Ltd., Mphasis, Coforge and Tech Mahindra, all the other six constituents declined
The Nifty IT snapped a two-day winning streak on Thursday.
Barring L&T Technology Services Ltd., Mphasis, Coforge and Tech Mahindra, all the other six constituents declined, with Wipro Ltd., Infosys Ltd. and L&T Infotech Ltd. losing the most.
The decline in Indian IT equities mirrors a fall in technology stocks on the Wall Street and in Hong Kong. The tech-heavy Nasdaq 100 slid more than 1%.
The fall in technology shares in the U.S. came amid a strengthening dollar, weakening Chinese economy and the latest Fed minutes that showed the need to balance inflation control while ensuring growth. The rise in bond yields and the prevailing uncertainty in the trajectory of the Fed rate hike weighed on growth stocks, including technology.
Over the last two months, the benchmarks gained 17%, aided by banking and FMCG stocks, while information technology underperformed.
The Nifty IT gained 1.1% on Wednesday and 0.7% on Tuesday.