Nifty IT Stocks: Shares of all the 10 IT companies included in the Nifty IT index are trading in the red mark.
IT Shares Crash: Tuesday’s trading session has proved to be extremely disappointing for the shares of the IT sector. Stocks of all IT companies, from giants to small and medium ones, fell on their face as soon as the stock market opened. Nifty IT fell below 750 points i.e. more than 2 percent. In fact, US-based IT services company EPAM has cut the revenue growth outlook for the current year, due to which a big decline is being seen in IT stocks.
EPAM estimates that US companies can make significant reductions in IT spending. It is believed that its effect can also be seen on domestic IT companies, due to which a big decline is being seen in the shares of IT companies.
Among the 10 companies included in Nifty IT, the biggest decline has been seen in the mid-cap IT company Persistent Systems. The company’s stock fell by Rs 300 or 5.13 per cent to the level of Rs 4905. Currently, Shape is trading at Rs 4968 with a fall of 4.63 per cent. The share of Coforge Ltd is also seeing a decline of 3.78 per cent and the stock is currently trading at Rs 4420. The Mphasis stock is trading at Rs 1913, down 3.72 per cent. Infosys is trading down 2.25 per cent.
L&T Technology and LTE Mindtree are trading with a decline of 1.97 per cent and 1.94 per cent. Zensar Tech is trading down 2.53 per cent. The biggest impact of reducing EPAM’s revenue estimate is being seen on the stocks of mid cap IT companies. EPAM believes that US companies can postpone such IT expenses which are not urgently needed for the time being. So this can have an impact on domestic IT companies, due to which there has been a decline in IT stocks.
