Technology stocks such as Infosys, Tata Consultancy Services (TCS), HCL Technologies, Tech Mahindra and LTIMindreee weighed down on Nifty IT on Wednesday, March 19. The IT index fell as much as 2.22 per cent to the day’s low at 35,804.60. It opened with a small gap-down at 36,581.65, and within the first minute of trading, the index began to slide, with the opening level marking the highest point of the day.
Index heavyweights Infosys and TCS traded down by nearly 2 per cent each, while Tech Mahindra and LTIMindtree fell more than 2 per cent. HCL Technologies, Persistent Systems and Coforge also traded in the red.
Wipro, on the other hand, bucked the trend and rose as much as 1.5 per cent during the day. Mphasis and L&T Technology Services also traded higher by around 0.5 per cent each.
Here’s Why Tech Stocks Are Falling Today
According to Sumit Pokharna, VP-Fundamental Research, Kotak Securities, Nifty IT is mirroring the US tech-heavy Nasdaq index.
Pokharna said, “The Nifty IT index is replicating the US Nasdaq index to a large extent. The Nasdaq Composite tumbled nearly 1.71 per cent, dragged lower by renewed selling in tech stocks. Investors waiting for the conclusion of a Federal Reserve meeting where the central bank is likely to keep interest rates unchanged. Geopolitical concerns also weighed on sentiment. Persistent concerns over higher trade tariffs under President Donald Trump also weighed, as did speculation over slowing economic growth.”
Nifty IT In Bear Territory
The IT index has already slipped into the bear territory, having corrected over 22.3 per cent from its all-time high hit in December 2024. An index or stock enters the bear market territory when its prices fall over 20 per cent over a prolonged period of time, usually accompanied by negative investor sentiment and a weakening economy.
In a note on India’s IT sector, Morgan Stanley, earlier this March, said that the changing global macroeconomic environment and technological shifts are creating risks for the industry, putting both revenue growth and valuations under pressure.
The brokerage firm had also noted that the relative valuations of IT stocks compared to the Sensex are still at their five-year average despite the ongoing market correction.
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