Nifty IT extends losses, nosedives near 700 pts; Heavyweights Infosys, TCS, HCL Tech, Wipro in a free fall

20 Jan 2022 , 02:43 PM

IT company stocks in India extended their free-fall even on Thursday as investors make a frenzy selloff in the sector on a global level. Today, Nifty IT erased the over 37,000-mark and was struggling to keep a pace near 36,500-level. Heavyweights TCS, Wipro, HCL Tech, Infosys were the worst hit and major movers of the index.

In the previous trading session, Nifty IT has shed by around 3%.

At around 2.37 pm, Nifty IT was trading at 36,593.40 lower by 688.30 points or 1.9%. On the index, 2 scrips advanced and 8 scrips declined.

The index has touched an intraday high and low of 37,249.05 and 36,512.50 respectively.

Infosys was the top bear nosediving by nearly 3% followed by TCS slipping over 2.2%. Coforge dipped 1.95%.

HCL Tech shed 1.6%, while Wipro dived 1.5%. Mphasis and LTI dropped over 1% each. Tech Mahindra is down 0.8%.

On the contrary, Mindtree and LTTS were the only gainers.

The deep red tone in technology stocks brewed as U.S. Treasury yields hit a multi-year high which has escalated worries about higher than expected interest rate hikes by US Federal Reserve. The Fed is firm on its hawkish stance to tighten monetary policy amid inflationary pressure. This has seeped through other markets technology stocks including Indian IT companies as well.

Also, the crude oil prices and hardening of bond yields have triggered consolidation in the stocks after a stellar run.