Indian IT stocks under pressure as Nasdaq index falls sharply on recession fears: Should you buy TCS, Infosys, Wipro, HCL Tech shares?
Nifty IT Breakdown: The slump in IT shares' prices in India could be attributed to the sharp fall in tech heavyweight Nasdaq index that closed 360 points or 3.23 per cent lower at 10,810.53 overnight in the US.
Nifty IT Breakdown: The Nifty IT index traded under pressure on Friday, December 16 in a weak market. The index was down 0.61 per cent at 28911.85 at the time of filing this report.
The slump in IT shares' prices in India could be attributed to the sharp fall in tech heavyweight Nasdaq index that closed 360 points or 3.23 per cent lower at 10,810.53 overnight in the US.
Among the constituents, Persistent Systems was the top loser with a decline of around 3 per cent at Rs 4072. While TCS declined 0.74 per cent to trade at Rs 3275, Wipro fell 0.53 per cent to Rs 391. L&T Technology Services was also down 1.20 per cent at Rs 3991. Infosys opened 1 per cent lower at Rs 1525. But it recovered to trade in green at 1:20 PM.
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According to Nilesh Jain, AVP, Centrum Broking Ltd, IT stocks look weak in the short term as he suggested staying away from fresh buying.
Zee Business panellist Shubham Agarwal said that the whole IT pack is in pullback mode. Talking about HCL Tech he said that the stock can retest the level of Rs 1020. He gave a sell call with a price target of Rs 1015/1020 apiece and stop loss of Rs 1060.
Another Zee Business panellist Sandeep Wagle said that the view of Infosys is bearish. He said that the stock has seen signs of fresh breakdown and it can test the level of Rs 1450/1460 apiece. He said that buying is recommended only if the scrip crosses the resistance levels Rs 1570/1575.
Earlier on Thursday, Nifty IT index settled lowers by more than 2 per cent at 29087.95. The index has lost over 3 per cent over the last one month.
The downtrend in IT stocks for the past few months is due to the heightened recession fear in the US and Europe markets. Indian IT companies are major exporters of services and they earn on the US dollar.