Nifty IT index slips for 6th straight session, down 10% so far in January – Wipro, Tech Mahindra top losers

Declining for the sixth straight session, the Nifty IT Index has slipped over 10 per cent so far in the month of January, registering its biggest one-day fall over 3.5 per cent on Monday this year. The IT index was mainly dragged by broader market IT stocks, followed by heavyweights such as Wipro. 

At around 02:11 pm, the Nifty IT index was down almost 4 per cent or 1400 points to 34657-mark, as compared to over 3 per cent fall in the Nifty50 on the NSE. Similarly, the BSE IT index also slipped nearly 4 per cent to the 34,561-mark as compared to an over 3 per cent fall in the S&P BSE Sensex. 

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The frontline indices – Nifty50 and Sensex – witnessing the biggest fall of this month and year too, just a week ahead of Budget 2022, which is scheduled to be presented on February 1 by Finance Minister Nirmala Sitharaman in Parliament. 

Individually, L&T Infotech declined by most intraday by over 8 per cent, followed by Coforge down over 7 per cent and Mindtree slipped over 5 per cent, leading the crack in broader markets. While the IT majors – Tech Mahindra, Wipro, HCL Tech, Infosys, and TCS are dragging the Nifty50 most. 

The weakness in the sector is said to be led by mute IT major results, including TCS, Wipro and Infosys, for the third quarter of the financial year 2021-22. The heavyweights are one of the top losers on the Nifty50 index, as Wipro and Tech Mahindra each fell by almost 6 per cent, followed by HCL Tech, TCS, and Infosys each down between 2-5 per cent intraday today. 

“If we look at the last three years' trend then we see a pre-budget sell-off on the back of global weakness then we see a post-budget rally however the long-term trend in the first quarter of any calendar year means January to March remains weak”, Parth Nyati, Founder, Tradingo said in a note.