DBT Bureau
Bengaluru, 31 May
Nifty IT, the index which measures the movement of major IT services and technology firms in India, was one of the major losers this week as selling pressure continued taking cues from Nasdaq.
On Friday, the index fell 1.28% to 32,386 as SaaS giant, Salesforce’s weak Q1 results weighed on many frontline IT stocks. This week, the Nifty IT index declined 4.25%, making it one of the major indices to drag the broader market.
Shares of Salesforce closed down 20% Thursday in Nasdaq, marking the stock’s worst day in nearly 20 years. The stock was hammered after Salesforce on Wednesday reported fiscal first-quarter results that missed Wall Street’s estimates. Such a miss of estimate was the first since 2006. The company also provided weaker-than-expected revenue guidance for the second quarter, though it maintained its full fiscal guidance.
Such an outlook weighed on Indian IT stocks on the last trading day of the week. Indian IT firms have been facing slow technology spending in the global markets for quarters.
Amid large caps, Market leader TCS’ share price declined 1.74% to close at Rs 3,670.95, while Infosys declined 1.44% to settle at Rs 1,406.90 at NSE. HCL Tech’s share price declined 0.58% to close Friday trade at Rs 1,324.10. Wipro was the only exception as its share price rose 0.29% to Rs 438.20 after consecutive corrections over the week.
Persistent Systems again fell the most among the index stocks as it corrected 3.03% to close at Rs 3,410.50 in NSE. LTIMindtree declined 1.49% to Rs 4,701.90, while Tech Mahindra’s share price declined 1% to settle at Rs 1,228.45 on Friday. Coforge was another mid-tier firm, whose stock price fell 0.52% to Rs 4,971. L&T Technology Services’ share price fell 1.29% to close at Rs 4,490.80 on the last trading day of the week.
All eyes will be on the Nasdaq Composite on Friday as April inflation data matched the market expectations, leading to a fall in US treasury yields.
