Nifty IT Index tumbles amid weak markets; Tech Mahindra, Wipro among top losers

24 Jan 2022 , 11:50 AM

Nifty IT Index tumbled amid weak markets on Monday with the index shed nearly 3% to continue the bleak performance since the new year began. All the listed IT companies on the NSE were trading in the red with Coforge, Mindtree, and Mphasis shedding over 5%.

Larsen & Turbo Infotech and Tech Mahindra were also nearly 4.5% down L&T technology Services and Wipro also plunged nearly 4%. TCS was the least affected sector, still 1% on the downside. Heavyweights Tech Mahindra and Wipro affected the sector most, emerging among top five losers overall. HCL tech and Infosys also was over 2% lower.

Globally, the tech sector now faces a crunch fortnight as its biggest names report results, including Microsoft on Tuesday, Tesla on Wednesday, and Apple on Thursday. The shares of loss-making technology companies continued falling as the hunt for yield slows down, and investors move into less risky assets.

Sensex shed nearly 1000 points, Nifty near 17,300; all sectors in the red. Nervous investors entered the pre-Budget week low on confidence, as they awaited the outcome of a two-day Fed policy meet starting Tuesday with the expiry of monthly derivatives contracts looming large. Investors have to move cautiously, analysts advised. All sectoral indices bled, with stocks of new-age tech companies the worst hit.

At around 11.50 AM, BSE Sensex was trading at 58,087.38 down 949.8 points or 1.61% and Nifty 50 at 17,322.60 down 294.55 points or 1.67%. Nifty IT was trading at 35,072.00 down 982.55 points or 2.73%, touching a high of 35,969.85 and low of 34,994.15 during intraday trade on Monday so far.