Behind the 1,500-Point IT Stock Bloodbath: Why TCS and LTIMindtree Are Plummeting Today
The Nifty IT index plummeted 4.87% on Wednesday, wiping out over 1,514 points to trade at 29,601.65. Market heavyweights TCS and LTIMindtree led the rout, plunging 7.91% and 7.41% respectively. A broad-based tech sell-off dragged all major IT components, including Tech Mahindra, Infosys, and Wipro, deeply into the red.
- Republic Business
- 2 min read
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Indian IT shares suffered a major rout on Wednesday, with the benchmark sector index shedding nearly 5% in morning trade. The sudden sell-off wiped out billions in market value across frontline software exporters.
The Nifty IT index crashed by 1,514.90 points, or 4.87%, to trade at 29,601.65. The index opened at 30,563.20 and hit a low of 29,596.75, showing aggressive selling pressure from the opening bell.
Heavyweights Lead the Rout
Market heavyweight Tata Consultancy Services (TCS) bore the maximum brunt of the sell-off. Shares of the country's top software exporter plummeted 7.91% to trade at Rs 2,253.30.
LTIMindtree (LTM) closely followed the downward spiral, dropping 7.41% to Rs 4,020.00. Other frontline majors also suffered deep cuts, with Tech Mahindra sliding 4.77% and mid-cap favorite Coforge losing exactly 5.00%.
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The carnage was visible across the entire IT basket, leaving no stock spared. Persistent Systems fell 4.84%, while HCLTech slid 3.95% to trade under the Rs 1,200 mark.
Sector giant Infosys shed 3.54% to sit at Rs 1,225.80. Mid-cap and niche players like Mphasis, Oracle Financial Services Software (OFSS), and Wipro also registered losses ranging between 2% and 3%.
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Global Triggers
This correction is due to a mix of global macro pressures and sudden risk aversion among institutional investors. Rising US treasury yields and high crude oil prices have renewed global inflation fears.
This macro environment dampens expectations of early interest rate cuts by the US Federal Reserve. Since Indian IT firms rely heavily on US corporate tech spending, any prolonged high-interest rate environment delays client deal conversions and impacts near-term earnings visibility.