Losing favour: IT sector weighting in Nifty50 at 5-year low of 12.2%

Gives up most of the gains in market cap in post-pandemic period

The recent sell-off in IT stocks such as Infosys and Tata Consultancy Services (TCS) has resulted in a sharp decline in the IT sector weighting in the Nifty50 index.

The sector’s weighting in the index has slipped to a five-year low of 12.2 per cent, down from the 17.7 per cent at the end of March 2022. The top IT companies —TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra — accounted for 13.6 per cent of the index at the end of March this year.

The combined market capitalisation of the big five IT companies is down 8.2 per cent since the start of 2023 compared to a 2.7 per cent decline in the Nifty50 index during theThe recent sell-off in IT stocks such as Infosys and Tata Consultancy Services (TCS) has resulted in a sharp decline in the IT sector weighting in the Nifty50 index.

The sector’s weighting in the index has slipped to a five-year low of 12.2 per cent, down from the 17.7 per cent at the end of March 2022. The top IT companies —TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra — accounted for 13.6 per cent of the index at the end of March this year.

The combined market capitalisation of the big five IT companies is down 8.2 per cent since the start of 2023 compared to a 2.7 per cent decline in the Nifty50 index during the