Mid-Cap IT Stocks Crash Up To 78%, TCS Slides 55% From Record High Amid Sector Selloff
· Free Press Journal
New Delhi: Indian information technology (IT) stocks witnessed sharp selling after weak guidance from Accenture raised fresh concerns about growth in the sector.
The cautious outlook from the global consulting company affected market sentiment and led to selling across both large-cap and mid-cap IT shares.
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Analysts said investors are becoming worried about slower business growth and weak demand in global markets.
Sensex Declines 831 Points, Nifty Slips Nearly 1% As Accenture's Weak Guidance Triggers IT Sell-OffLarge IT Companies See Sharp Fall
Among large IT firms, Tata Consultancy Services (TCS) has fallen nearly 55 percent from its record high of Rs 4,592.
Wipro is down 52 percent , while LTIMindtree has declined 50 percent from its peak.
Infosys has also dropped 48 percent , showing weakness across major technology companies.
Mid-Cap IT Stocks Hit Harder
Mid-cap IT stocks have seen even deeper corrections compared with large-cap companies.
Happiest Minds Technologies has emerged as the worst performer, falling around 78 percent from its all-time high.
Sensex Falls 479 Points To 76,010, Nifty Slips Below 23,950 Amid IT And Banking WeaknessNewgen Software has dropped 74 percent , while Sonata Software is down 66 percent .
Other IT firms such as Birlasoft, Tata Elxsi and KPIT Technologies have also declined by more than 60 percent .
Why Sector Is Under Pressure?
Market experts said uncertainty over global growth, geopolitical tensions and higher US interest rates are hurting technology spending.
Higher borrowing costs are increasing recession fears in the US, which remains the biggest market for Indian IT companies.
US Market Remains Key
India’s IT sector is valued at nearly Rs 26 lakh crore, with about 57 percent of revenue coming from the US market.
Analysts believe IT stocks may remain volatile until demand improves and companies provide stronger growth guidance.