Nifty IT Slides Over 2% to 33-Month Low; FIIs Sell ₹9,365 Cr Ahead of Fed Meet

 Indian equity markets were trading mixed in the morning trade on Tuesday, with sharp losses in IT stocks, which offsets gains in banking and auto names.

The Nifty IT fell over 2%, hitting a 33-month low, as global cues and institutional selling weighed on the sector.

IT Index at 33-Month Low; Heavyweights Decline

Selling was broad-based across large-cap and mid-cap IT stocks.

• Wipro: ₹195.11, down 2.33%, near key support at ₹193
• Infosys: ₹1,248.30, down 2.20%, below 200-DMA
• HCL Technologies: ₹1,324.45, down 2.10%
• Tata Consultancy Services: ₹3,382.15, down 1.80%
• Coforge: ₹5,820, down 3.58%, top midcap loser
   

On the technical front, the sector is showing signs of stress, with the relative strength index (RSI) slipping below 15. This indicates oversold conditions.

FII Selling, Crude Add Pressure

Investor sentiment remains cautious ahead of the U.S. Federal Reserve policy decision on March 18. Markets are factoring in a higher-for-longer rate outlook. This typically weighs on IT stocks due to their dependence on global demand and valuations.

Foreign institutional investors (FIIs) were net sellers to the tune of ₹9,365 crore in the previous session, adding to the pressure on equities, particularly export-oriented sectors.

At the same time, rising geopolitical tensions in West Asia have pushed Brent crude to around $102.87 per barrel, raising concerns around inflation and input costs.

Benchmarks Hold Gains; Rupee Hits Record Low

Despite the decline in IT stocks, benchmark indices were trading higher, supported by gains in financials and select heavyweights.

• Nifty 50: 23,473.05, up 0.28%
• BSE Sensex: 75,696.83, up 0.25%

The Indian Rupee weakened to 92.42 per US dollar, marking a record low amid continued dollar strength and geopolitical tensions.

Among individual stocks, Reliance Industries traded at ₹2,912, up 0.35%, after securing a 15-year green ammonia supply deal with Samsung C&T.

Multi Commodity Exchange of India gained to around ₹2,556 as volatility supported trading volumes, while Trent and HDFC Bank provided support to the indices.

IT stocks are expected to remain under pressure in the near term. The direction is likely to be guided by the Fed’s policy outcome and global macro cues. Sectoral rotation towards domestic-facing sectors such as banking, energy, and autos may continue.

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