Active Stocks
Fri Dec 08 2023 15:59:53
  1. Tata Steel share price
  2. 129.2 -0.62%
  1. HDFC Bank share price
  2. 1,653.1 1.38%
  1. State Bank Of India share price
  2. 614 0.35%
  1. NTPC share price
  2. 285.25 0.42%
  1. ITC share price
  2. 449.15 -1.95%
Business News/ Markets / Stock Markets/  Nifty IT cracks over 2%; Tech Mahindra, Mphasis, LTIMindtree among top losers
Back Back

Nifty IT cracks over 2%; Tech Mahindra, Mphasis, LTIMindtree among top losers

Nifty IT index drops over 2% due to downward pressure on heavyweight companies.

 Nifty IT index finished over 2% lower on Thursday's overall weak market.Premium
Nifty IT index finished over 2% lower on Thursday's overall weak market.

In Thursday's overall sluggish market, the Nifty IT index finished over 2% lower, driven by downward pressure on heavyweight companies including Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Tech Mahindra Ltd.

TCS, Mphasis, and LTIMindtree shares all dropped between 2% to 4% on Thursday's trading session, and were top three laggards of Nifty IT index. 

Shares of Tech Mahindra (down 4.24%), LTIMindtree (down 2.8%), Wipro (down 2.1%) were among the major laggards of the Nifty 50 index. 

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

According to technical analysts, given the prevailing bearish momentum, it is possible that we might witness additional weakness in the upcoming sessions.

Nevertheless, from a technical perspective, it's worth noting that this IT index previously broke out of a multi-month resistance level at 31,600, explained Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

"Therefore, any declines should be viewed as corrective rather than indicative of an actual price reversal. Traders should seize this as an opportunity, considering buying on further dips. Conversely, it's important to recognise that the immediate resistance lies in the range of 33,000 to 33,300," advised Bhosale.

Also Read: Brent above $97/bbl, WTI up 1% amid supply concerns

According to analysts for a few days now, the market has been under pressure, and the trend has persisted as a result of selling by foreign institutional investors. India VIX (up 10.7%) also increased significantly, indicating a high risk. Globally, attention will be focused on US GDP figures and the FED chief's speech, which will serve as a trend indicator.

Domestic benchmark equity indices, Nifty 50 and Sensex ended in red on the back drop of weak global cues, and sharp selling ahead of the F&O expiry. 

The Nifty 50 closed at 19,523.55, down 192.90 points, or 0.98 per cent. The 30-share BSE Sensex closed lower at 517.54 points, or 0.78 per cent, at 65,601.15.

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Nifty 50 sunk joining the conga-line of weak global stock markets. Nifty IT index drops 1.9%. The needle continues to print towards pessimism as Nifty’s bulls face a wall of worry. 

Nifty 50 stayed depressed as extreme fear was being witnessed amidst FIIs selling, hawkish Fed backdrop, interest rates likely to be higher for longer to keep inflation in check, rising yields, spiking oil prices to $94 a barrel, and Washington's march toward its first shutdown since 2019.

Also Read: Market Closing Bell: Indices decline on F&O expiry day; Sensex sheds 500 points, Nifty dips to 19,500-mark





Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 28 Sep 2023, 04:18 PM IST
Next Story footLogo
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App