Sasmita Jena
Bengaluru, 5 August 2024
The Nifty IT index, which measures the movement of major IT services and technology firms in India, witnessed a deep correction on Monday in line with global markets that stuttered on rising investors’ worries.
At 11.30 AM, the Nifty IT index was trading 4.35% down at 38,025, making it one of the worst index performers in Nifty. Nifty was down 3.24% to breach below the 24,000 mark on Monday as Asian markets saw a steep correction in the morning trade.
Among major Asian indices, the Korean market fell the most as Kospi was down more than 8% to trade at 2,459.81. South Korean shares slumped, extending the sell-off to a second straight session with a trading curb activated for the first time in four years. Japan’s Nikkei 225 index slumped 12.81% on Monday as investors took cover owing to recession fears in the US.
Indian IT stocks head for a correction!
Amid fears over the US recession rises and correction in Nasdaq, Indian IT stocks saw selling pressure on Monday. The share price of TCS was trading 3.50% lower in NSE at Rs 4,133 at 11.45 AM on Monday. Infosys, which was a major gainer in recent weeks after its Q1 results, also saw selling pressure with its share price trading 5.57% down at Rs 1,719. Wipro’s share price was hovering 3.80% down at Rs 483 in the morning trade. HCL Tech was trading 4% down at Rs 1,544 per share.
Mid-cap stocks also faced selling pressure, which has seen a good run in recent weeks. Tech Mahindra was down 4.6% to trade at Rs 1,438 in the morning trade. All major mid-tier IT companies’ stocks including that of LTI Mindtree, Persistent Systems, and Coforge were trading in deep red.
The Indian market is taking cues from the Nasdaq, which witnessed a sharp sell-off and closed 2.43% lower at 16,776.16 on Friday last week. Nvidia and Tesla were down more than 20% from recent highs, while Microsoft Corp. and Amazon have each lost more than 10% in the last two weeks.
