Nifty IT stocks under pressure ahead of quarterly earnings; Tech Mahindra, HCL Tech, TCS among top losers

6 Apr 2022 , 12:05 PM

Nifty IT stocks were under extreme pressure amid weak markets on Wednesday. The Index was 1.3% lower with only L&T Infotech stock trading in the green. Mphasis, Tech Mahindra, HCL Tech and TCS dragged the most. Infosys and Wipro were also under pressure.

The domestic indices witnessed a broad-based selloff was witnessed with banking and IT stocks underperforming the most. Also, investors focus has shifted to March 2021 quarterly results. 

According to reports, IT companies may beat the Ukraine crisis, inflation worries in the recently concluded March quarter. The results of Indian IT services players are expected to reveal continuing growth momentum as demand surges on the back of digital transformations and the cloud shift, but analysts anticipate margins to be under pressure due to supply challenges.

At around 12.10 PM, BSE Sensex was trading at 59,792.29 down 384.21 points or 0.64% and Nifty 50 at 17,860.55 down 96.85 points or 0.54%. Nifty IT was trading at 35,997.60 down 468.95 -points or 1.29%, touching a high of 36,371.90 and low of 35,820.35 during intraday trade on Wednesday. 

The Indices tracked weak global peers as investors contemplated the latest announcement from the US Federal Reserve Governor Lael Brainard indicating hawkish stance in Fed policy. Fed Governor has cleared that the Fed will start reducing the balance sheet size soon.

Notably, investors’ focus has also shifted to RBI’s first monetary policy for fiscal year FY23, which is set to be announced on April 08.

LTI was 0.37% higher at Rs6,361.05 per piece to be the only stock on Nifty IT to trade higher.

Mphasis was the top laggard by shedding over 2.5% while HCL Tech and Tech Mahindra were around 1.75% lower each. TCS was also over 1.4% on the downside while Infosys dragged 1.3%. Wipro was over 0.8% lower.