By Admin 
It companies market cap falls: This year, the biggest decline in the stock market is being seen in the shares of IT companies. The shares of the five largest IT companies in the country on BSE have dropped by about 25 percent in the last seven months. This is the worst performance of these companies in the last five years. The biggest reason for this decline in shares of IT companies is a challenge arising out of Artificial Intelligence of these companies and Artificial Intelligence.
Why did shares of IT companies fall?
In fact, the total market capitalization (market cap) of Infosys, Wipro, TCS, Tech Mahindra and HCL Technologies declined to Rs 24.86 trillion on Friday, which was Rs 32.67 trillion in December last year.
On the one hand, the PE (Price-to-Erning) ratio of these IT companies is reduced. The trailing PE of five top IT companies was 25.5 times in December 2023, which is now just 22.3 times. In December of 2021, this record reached 36 times. TCS has suffered the biggest loss, whose market cap dropped about 26% this year. Apart from this, HCL Technologies 23.1%, Infosys 24.3%, Wipro 20.7% and Tech Mahindra are in falling 13.2%.
Major causes of decline:
Artificial Intelligence’s challenge and potential reduction in demand for traditional IT services
Weak quarterly results
American trade tariff policies and global economic uncertainty
TCS announced a large scale trimming, which weakened the trust of investors
Also read: Indian rupee showed strength amid tariff’s uncertainty, showed US dollar again
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