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Updated January 3rd, 2024 at 13:45 IST

Nifty IT indices in red as 8 out of 10 companies register share loss

The IT index fell 2.2 per cent with large caps Wipro (-2.54) and Infosys (-2.30) among the top Nifty 50 losers

Reported by: Business Desk
Edited by: Rajat Mishra
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The Nifty IT index saw a sharp fall on Wednesday, amid global markets sliding on the back of fading optimism about early US interest rate cuts, ahead of the release of the Federal Reserve minutes and jobs data.

The blue-chip NSE Nifty 50 index fell 0.41 per cent to 21,577.60 points, while the S&P BSE Sensex shed 0.47 per cent to 71,555.96, as of 10:01 a.m.

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"There is a distinct possibility of profit booking to continue, but 21,500 is a very good support level for Nifty 50," said Samrat Dasgupta, chief executive of Esquire Capital Investment Advisors.

IT Takes a Fall

The IT index fell 2.2 per cent with large caps Wipro (-2.54) and Infosys (-2.30) among the top Nifty 50 losers, and midcaps Mphasis (-3.08) and Coforge (-2.85) trailing as well.

"IT will be definitely under pressure this earnings season, because we have not seen any fundamental positive change in the client budget and the read-through from Accenture's results were not optimistic," Dasgupta added.

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Nifty IT is calculated using the free float market capitalisation weighted methodology, considering the stock prices and the number of shares available for trading.

Most IT companies are affected by a shift in global technology trends, outsourcing opportunities, regulatory changes, and market sentiment, as per mobile investment platform Dhan.

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Macro Situation

Asian shares dropped 1 per cent for the second straight session, tracking a broader global sell-off. Wall Street fell overnight, dragged by a slide in Apple over demand concerns.

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The Fed minutes, due later in the day, and key labour market data, expected later this week, will help assess if the optimism over potential rate cuts is justified.

(With Reuters Inputs)

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Published January 3rd, 2024 at 11:32 IST

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