Tech stocks get hammered in manic Monday sell-off; Nifty IT falls 3.5%

The tech-heavy Nasdaq index is down 22 per cent this year

Information technology (IT) stocks took a hammering in Monday’s sell-off. The Nifty IT Index dropped over 3.5 per cent, underperforming the benchmark Nifty50 Index which finished 1.4 per cent lower.

The performance of IT stocks also mirrors a trend in the US. On Friday, the technology (tech)-heavy Nasdaq dropped nearly 4 per cent, while the Dow Jones fell 3 per cent after the US Federal Reserve (Fed) Chair Jerome Powell delivered a stern message at the Jackson Hole symposium on the need to curb inflation, even at the cost of growth.

“The sentiment against tech stocks in the US has