IT stocks selloff continues! Infosys, TCS crash up to 6% - what’s driving the massive rout

The selloff in IT stocks persisted today, with major players like Infosys and TCS experiencing sharp declines of up to 6%. As of 9:50 am, the Nifty IT index had plummeted by 4.59%, shedding 1,520 points to trade at 31,639. This downturn signals a widespread retreat in technology stocks, raising concerns among investors about the sector's near-term outlook. Market analysts attribute the ongoing rout to a mix of global and domestic factors. Internationally, rising bond yields and fears of an economic slowdown have spurred a risk-off sentiment, prompting investors to exit high-growth sectors like technology. Domestically, disappointing quarterly earnings and margin pressures have further dampened investor confidence in IT companies, traditionally seen as market stalwarts. Despite the turmoil, some experts suggest that the current valuations might present buying opportunities for long-term investors. However, the immediate focus remains on how IT firms navigate the challenging environment, with a close watch on upcoming earnings reports and management guidance. As the situation unfolds, stakeholders are keenly observing any signs of stabilization or further volatility in the tech sector.

— Authored by Next24 Live