Infosys, TCS, HCLTech tumble again: Why are IT stocks falling today?
India Today
A sharp slide in India's biggest tech stocks has once again put the spotlight on global uncertainty and the growing fear that artificial intelligence is reshaping the industry faster than expected.
Major information technology stocks on Dalal Street were under pressure again on Tuesday morning, with Infosys, TCS and HCLTech among the biggest losers in early trade.
By around 9:35 am, most IT stocks were deep in the red, pulling the Nifty IT index down more than 3% and weighing on the Sensex and Nifty as well.
The sector has been under pressure for most of this month because of fear that artificial intelligence (AI) could reduce the need for some of the routine work Indian IT companies do for global clients.
There was a period of slight recovery in between, but yesterday’s global developments have triggered a fresh wave of selling and pushed the stocks lower again.
The first trigger is global uncertainty. Markets everywhere are on edge ahead of President Donald Trump's State of the Union address. Investors are waiting to hear his comments on trade because the European Union recently froze a major deal with the United States after tariff changes.
Tariffs are taxes that one country puts on imported goods. When these go up or become unpredictable, companies hesitate to spend money and stock markets turn nervous.
Venkataraman joined Flipkart in 2015 and has been part of the company's leadership team through a period of growth and restructuring. During his tenure, he helped strengthen the company's financial operations.
The gold rate today is around Rs 1.5 lakh per 10 grams for 24-carat gold, while 22-carat gold is near Rs 1.4 lakh, with prices edging higher after recent losses. Silver is also seeing a slight uptick after a volatile phase.
Early indicators suggest a positive start. GIFT Nifty futures were trading at 23,250.5 at around 08:24 am, indicating that the Nifty 50 may open above Thursday's close of 23,002.15.
With multiple energy hubs under threat, the risk to global supply chains has increased sharply. For countries like India, which depend heavily on imports, this means higher costs and tighter supply in the near term.
In a statement, the central bank said it has taken note of the recent developments at HDFC Bank and has approved the transition arrangement proposed by the bank for the position of part-time chairman.
Global brokerage JPMorgan has maintained a "neutral" rating on the stock with a price target of Rs 1,090. HDFC Bank stock is already trading near its 52-week low, adding to weak sentiment around the counter.
The IPO is expected to be structured as an "offer for sale" (OFS). This means existing investors will sell a part of their stake to the public, rather than the company issuing new shares.
Sensex ends 633 points higher, Nifty above 23,700; Infosys up 3%
The Sensex was up 825.79 points, or 1.09%, at 76,896.63, while the Nifty 50 gained 239.10 points, or 1.01%, to trade at 23,820.25 as of 11:44 AM. It may be noted that the Sensex has gained over 2,000 points this week after a sharp losing spree.
The reconstituted panel includes several key institutional representatives. These include members from the Life Insurance Council and the General Insurance Council, along with heads of important professional bodies.