The information technology sector stocks are trading in the red in Tuesday’s session. The Nifty IT is down 1.75% as of 11:30 am and hit an intra-day low of 37,609.70, underperforming other sectoral indices. Most of the constituents of the Index are in the red.
Infosys’ share price saw maximum decline on the charts, falling 3.1% to a low of Rs 1,576.10 on the National Stock Exchange. It was followed by the Oracle Financial Services share price, down 2.16% to Rs 8,526.00, and the share price of HCL Technologies slipped 1.9% to Rs 1,638.40. Infosys’ share price is a key loser on the Nifty 50 as well.
The key reasons why tech stocks are falling today
Profitbooking in tech sector
The tech sector is seeing significant profit-booking after the standout performance yesterday. The stocks had seen brisk buying in yesterday’s session, and investors are taking a break after the rally seen yesterday. The dollar also remaining rangebound further weighed on sentiment.
Nifty IT has risen more than 6% in the last one month. The index has increased by 5% in the past six months. It has raised investors’ wealth by almost 12% in the last 1 year.
Deal wins slow down in April
One of the reasons behind the fall in tech stocks could be that the deal pipeline in April 2025 seems to be disappointing. FinancialExpress.com reported that, as per the latest report by BNP Paribas, deal wins have declined significantly in April compared to March. They further stated that most deal wins were related to Digital transformation, AI, and Cloud transformation. “The 3-month rolling sum of deal signings, which is a strong one-quarter lead indicator of deal TCV, also declined,” said the brokerage house.
US Futures under pressure
Apart from that, the other concern was the trend emerging from the US. The US futures contracts tied to the American benchmark Dow Jones Industrial Average fell 0.19%, trading at 42,327.81. This has made investors significantly cautious.