IT sell-off snaps markets’ 9-day gaining streak; Infosys slumps about 10%- QHN
After dropping as much as 989 points, the Sensex recouped some of its losses to close at 59,911, down 520 points, or 0.86 per cent — the most since March 13. The Nifty50 index, on the other hand, settled at 17,707, down 121 points, or 0.68 per cent, with the five IT stocks in the index dragging it down by 190 points.
Shares of Tech Mahindra declined 5.3 per cent, HCL Technologies by 2.7 per cent, Wipro by 1.8 per cent, and TCS by 1.6 per cent. Analysts said the revenue hit for IT companies was much steeper than they were expecting, warranting a de-rating.
Index heavyweights HDFC and HDFC Bank fell around 1.6 per cent each and also weighed on the market’s performance.
In the preceding nine trading sessions, the Sensex and the Nifty had gained nearly 5 per cent in what was their longest gaining streak in more than two years. The gains came on the back of robust buying by foreign portfolio investors (FPIs) of close to Rs 10,000 crore.
The rise in US treasury yields amid the possibility of further monetary policy tightening also weighed on investor sentiment.
Last week, Federal Reserve Governor Christopher Waller said he preferred more monetary policy tightening to tame high inflation. Waller said financial conditions had not significantly tightened, and the labour market continued to be strong.
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