Nifty IT index slips over 2% as sector faces sharp correction

The Nifty IT index dropped 2.11 per cent on Thursday, hitting an intraday low of 43,087.25, underperforming the broader markets. The decline followed two consecutive sessions of record highs, with the index retreating from its Wednesday peak of 44,330.60.

Sector under pressure

Prominent IT stocks led the slide. Infosys dropped 3.17 per cent to Rs 1,863.55, while L&T Technology Services and Tech Mahindra lost 3 per cent and 2.84 per cent, respectively. Other players like TCS, Wipro, LTIMindtree, and Mphasis saw declines of 1–2 per cent.

Profit booking after lifetime highs

The pullback reflects profit booking after a strong rally that saw the Nifty IT index rise 3 per cent over the last month, far outperforming Nifty50’s 1.16 per cent decline. Analysts noted the emergence of bearish patterns in the index, signalling potential exhaustion in momentum.

Global tech sell-off adds to woes

Weakness in US tech stocks overnight exacerbated the sector’s struggles. Key names like Nvidia, Dell, and HP faced significant losses, dragging the Nasdaq Composite down 0.6 per cent.

Outlook

Technical indicators suggest immediate support at 42,600 for the Nifty IT index. Investors are advised to tread cautiously, focus on booking profits during rebounds, and avoid new positions until clearer trends emerge.