Wednesday's Top Bear! Nifty IT nosedives over 710 pts with all stocks in red; LTTS top bear after Q3; TCS, HCL Tech, Infosys, LTI pull back

19 Jan 2022 , 11:50 AM

Nifty IT was the top bear of Tuesday’s trading session led by a steep fall in all stocks listed in the basket. Technology stocks on a global level dragged broader markets as sooner-than-expected interest rate hikes weighed sentiments amidst a stellar rise in Treasury yields. Also, corporate earnings season swayed movements. On Nifty IT, all stocks were in red with the downside ranging from 1% to nearly 6%.

At around 11.43 am, Nifty IT was trading at 37,377.20 lower by 714.55 points or 1.88%. The index has touched an intraday high and low of 38,011.90 and 37,263.15 respectively.

L&T Technology Services stock was the worst hit nosediving by nearly 6% after announcing Q3 earnings. The company’s consolidated profit after tax (PAT) for the Dec-21 quarter was up 33.69% at Rs248.80cr on the back of EBIT margins growing by 340 bps at 18.6%. LTTS logged a 20.48% growth in total revenues for the Dec-21 quarter on a consolidated basis at Rs1,687.50cr.

Mphasis dipped nearly 4%, while L&T Infotech shed 3.8% ahead of Q3 earnings. Coforge and Mindtree slipped more than 2% each. Infosys dived 1.9%.

Wipro plunge over 1.5%, while HCL Tech and index heavyweight TCS contracted by more than 1% each. Tech Mahindra dropped 0.95%.

On Monday, on Wall Street, the tech-heavy index Nasdaq falls over 350 points. The bond yield hit pre-pandemic highs @ 1.87% with the 2 year bond yields hitting 2% for the 1st time in over 2 years. Crude rises to 7-year highs as colder weather & rise in demand sees prices rise sharply.

The prospects of hiking interest rates sooner than expected by central banks to control inflationary pressure weigh on markets globally.