Investors lost nearly Rs 77,000 crore in the first session of the truncated week as the NSE Nifty IT slumped to the lowest level in over six months. The market-cap of IT stocks fell Rs 76,975.04 crore to Rs 33.35 lakh crore as of 10:46 a.m.
IT stocks declined tracking overall weakness across markets after global stocks fell on fears of a slowdown in the US economy after data showed that economic activities slowed to 17-month low. US business activity slowed on fears of impact of tariff on imports and reduction in federal spending.
Data showed that US Composite Purchasing Manufacturing Index declined to 50.4 in February from 52.7 in January, marking the lowest level since September 2023, according to Bloomberg.
Moreover, another set of data showed that US consumers’ expectation of inflation rose to the highest level in over three decades, according to Bloomberg. Higher inflation in the US means that interest rates will likely stay at high levels, impacting demand. This will impact discretionary spends from consumers and businesses.
Economic factors in the US impact Indian IT companies because they conduct substantial business in the country.
Mphasis Ltd., Persistent System Ltd., and Wipro Ltd. were the top losers in the Nifty IT index. Mphasis and Persistent Systems declined 4.07% and 4.28%, respectively, so far today. Meanwhile, Wipro declined 3.44%.
Tech Mahindra Ltd. and Infosys Ltd. declined the least compared to other IT companies’ stocks. They were trading 1.79% and 2.37% lower, respectively.
. Read more on Markets by NDTV Profit.Mphasis Ltd., Persistent System Ltd., and Wipro Ltd. were the top losers in the Nifty IT index. Read MoreMarkets, Notifications
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