Nifty IT index down over 2% as Infosys shares fall 3.37%
Indian IT stocks crashed on Monday following US jobs data that increased the probability of a Federal Reserve rate hike in September.
Major Indian information technology companies including Infosys, HCLTech, TCS, Wipro, and LTI Mindtree saw shares decline significantly as US employment figures strengthened risk-off sentiment. The Nifty IT index dropped more than 2%, trading at 30,082 points on Monday. Infosys shares fell by 3.37% to Rs 1092.00, while HCLTech and TCS also declined around 3%. Market data released on Friday showed US nonfarm payrolls rising by 162,000 in August, far exceeding expectations of a 56,000 gain. The unemployment rate stayed steady at 4.1%, suggesting the labor market remains robust. Traders now assign approximately a 57% chance to a Federal Reserve interest rate increase this month. Analysts argue that while short-term IT spending faces headwinds from US economic tightening, longer-term deployment opportunities for artificial intelligence offer potential value. The wider Nifty 50 closed at 23,779.15, down 0.50%, as elevated crude oil prices and geopolitical uncertainty weighed on investor confidence across the Indian market.
