IT Sector Crash: The weakness that has been seen in the stock market in recent times. In this, the impact on the IT sector is also clearly visible. In fact, even before tensions increased in the Middle East, IT companies were under pressure due to the increasing use of Artificial Intelligence. The effect of which has become more visible after the results of the fourth quarter.

In this environment, there was a significant decline in the shares of big IT companies like Wipro, Tata Consultancy Services Ltd, Infosys and HCL Technologies. This is the reason that last week, the biggest decline in the last five years has been recorded in the entire IT sector. Let us know about this.

IT index broken due to weak signals

The fourth quarter results of IT companies have not been good. Also, the management has not expressed much hope for the future. This had a direct impact on the market and the Nifty IT index fell by about 10 percent in a single week. Due to which the momentum of the last few weeks ended.

The pressure of decline has been so great that the total market value of tech companies has seen a decline of about Rs 2.5 lakh crore. Talking about the figures, it is considered to be the biggest weekly decline after March 2020. Earlier, such a huge decline was seen during the time of Covid-19. At that time the index had fallen by about 13.6 percent.

IT sector under selling pressure

The recent decline has had the biggest impact on those big IT companies, which remain the reason for the growth of the entire sector. Charts of big stocks like Infosys, Tata Consultancy Services Ltd, Wipro and HCL Technologies have also weakened. Due to which the concern of investors has increased.

Amidst such an environment, along with retail investors, FIIs are also continuously withdrawing their money. Especially foreign investors have sold about Rs 20,000 crore till April 15 this year. Due to which there is pressure on the entire sector.

Currently cautious stance on IT sector

Market experts are not very positive about big IT stocks right now. He believes that not only the prices in this sector may also see further decline in future. In such a situation, investors should not expect any big or good returns for the next 2 to 3 quarters. At present the entire sector may remain under pressure.

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