IT Stocks Crash: In the last trading session of the week, it was expected that the National Stock Exchange’s Nifty, which had missed the historic mark of 20,000 on Thursday, would definitely cross this historic mark on Friday. But after the market closed on Thursday, the disappointing results of IT giant Infosys dashed the expectations of the market.
Infosys spoiled the mood of the market
On Thursday itself, the ADR of Infosys had slipped 11 per cent due to poor results. That’s why a sharp decline in the stock of Infosys was being expected in the Indian markets as well and the same happened. Infosys shares fell by Rs 133 or more than 9 per cent after the Indian markets opened. Currently, the stock is trading at Rs 1331, down by Rs 118 or 8.19 per cent. Due to the decline in Infosys, the Indian stock market is also trading with a huge decline.
IT stocks fall flat
Due to the sharp fall in Infosys, the IT index of Nifty is trading with a decline of 1180 points or 3.80 percent. BSE’s IT index is also trading down 4.18 percent or 1314 points. It is not that only Infosys is down. Rather, the results of other midcap IT companies are also not being liked by the market. Due to which their decline is being seen. Apart from Infosys, Persistent Systems is trading down 5.23 per cent, Tech Mahindra 4.26 per cent, Coforge 2.69 per cent, HCL Tech 3.58 per cent, Tech Mahindra 4.26 per cent, Wipro 2.41 per cent, TCS 2.06 per cent and LTI Mindtree 1.12 per cent. KPIT Tech is trading down by 5.73 percent, Quick Heal Tech by 8.01 percent, Sasken Tech by 2.05 percent.
Why are IT stocks falling?
When Infosys announced the results on Thursday, the company reduced its revenue guidance for this financial year. Due to the global economic situation, global companies are cutting down on IT spending or are currently postponing their plans to spend. Due to which the order book of IT companies is decreasing. This situation is from America to Europe. If it has an impact on a giant company like Infosys, then it is bound to have an impact on midcap IT companies. The coming time is looking challenging for IT companies. Due to this, its beating is being seen on IT stocks.
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