Nifty IT index slips over 2% as sector faces sharp correction

The Nifty IT scale dropped 2.11 per cent connected Thursday, hitting an intraday debased of 43,087.25, underperforming the broader markets. The diminution followed 2 consecutive sessions of grounds highs, with the scale retreating from its Wednesday highest of 44,330.60.

Sector nether pressure

Prominent IT stocks led the slide. Infosys dropped 3.17 per cent to Rs 1,863.55, portion L&T Technology Services and Tech Mahindra mislaid 3 per cent and 2.84 per cent, respectively. Other players similar TCS, Wipro, LTIMindtree, and Mphasis saw declines of 1–2 per cent.

Profit booking aft beingness highs

The pullback reflects nett booking aft a beardown rally that saw the Nifty IT scale emergence 3 per cent implicit the past month, acold outperforming Nifty50’s 1.16 per cent decline. Analysts noted the emergence of bearish patterns successful the index, signalling imaginable exhaustion successful momentum.

Global tech sell-off adds to woes

Weakness successful US tech stocks overnight exacerbated the sector’s struggles. Key names similar Nvidia, Dell, and HP faced important losses, dragging the Nasdaq Composite down 0.6 per cent.

Outlook

Technical indicators suggest contiguous enactment astatine 42,600 for the Nifty IT index. Investors are advised to tread cautiously, absorption connected booking profits during rebounds, and debar caller positions until clearer trends emerge.