IT stocks: Nifty IT index slips over 2% on fears of slowing US economy

Among sectoral indices on the NSE, the Nifty IT index was the top laggard on Monday, falling more than 2 per cent in early trades during the session. 

 

At 9:57 AM, the Nifty IT index was trading lower by 2.30 per cent, at 39,612. It touched an intra-day low of 39,465.75 during the session so far.

 

While all its ten constituent stocks were trading lower, L&T Technology Servivces shares were the top drag, falling 5.55 per cent, followed by Persistent Systems (down 4.11 per cent), Mphasis (down 3.79 per cent), LTIMindtree (down 3.07 per cent), and HCLTech (down 2.74 per cent).

 

The run on IT stocks came following a drop of 2.20 per cent on the tech-heavy Nasdaq index on Wall Street in Friday's session, amid fears of a slowdown in the US economy.

 

Further, the Nifty IT index has declined more than 14 per cent from its 52-week high of 46,088.90, hit on August 13, 2024.

 

Market experts said fears of a slowing US economy also weighed on the sector's stocks.