Nifty IT tumbles nearly 2% as JPMorgan downgrades IT stocks to 'neutral'

The Nifty IT index dropped 1.8 per cent on Tuesday, extending its two-day slide to nearly 4 per cent. The drop comes amid a downgrade by JP Morgan.

The brokerage downgraded all its ‘overweight’ stocks in the IT sector to ‘neutral’ and maintained its ‘underweight’ position on the sector — the best-performing sector last calendar year. The brokerage expects margin of technology companies to come under severe pressure. 

The NSE IT index is down 25 per cent year to date, sharply underperforming the Nifty 50 index, which has gained 1.3 per cent during this period.