Nifty IT Index Dips 3.2% as Oil Prices Hit $100
Indian IT stocks posted their worst daily drop in three months amid rising US interest rate fears and soaring crude oil prices.
The Nifty IT index fell 3.2% on Wednesday, marking its largest single-day decline in three months. Individual shares dropped sharply, with Coforge down 5.4%, Infosys declining 3.3%, HCL Tech falling 4.1%, and Tech Mahindra dropping 4.2%. The benchmark Nifty 50 index retreated 0.9% that same day. Sumit Pokharna, vice-president of Fundamental Research at Kotak Securities, stated that geopolitical tensions and high oil prices are key drivers. Crude oil November futures reached $100.4 a barrel on Wednesday evening, the highest level since May. He noted these conditions could boost inflation expectations and support Federal Reserve rate hike scenarios, potentially reducing US IT spending. Higher H-1B visa costs and worries about generative AI disruption also add pressure to the sector.
