Sell-off In IT Stocks Continues On Monday, Wipro Falls Over 6% To Hit 52-Week Low

Nifty IT started the week under heavy selling pressure on Monday, falling more than 1.5 percent amid weak global cues, including a 4 percent drop in the Nasdaq Composite on Friday. All stocks in the Nifty IT index traded in the red.

Wipro emerged as the biggest loser, sliding over 6 percent, while TCS, Infosys and Persistent fell more than 1 percent each. Tech Mahindra, which opened in the green, has also slipped into negative territory.

Wipro hit its 52-week low of Rs 185.55 on Monday.

The decline adds to a challenging year for the index, which has corrected nearly 24 percent on a year-to-date basis and dropped over 23 percent in the past year.

Last week, the Nifty IT index had seen a brief rally following comments by Nvidia founder Jensen Huang on AI and the enduring role of software companies, but profit-booking later pared gains.

According to experts, the information technology sector continues to face weak discretionary technology spending. Moreover, AI-led disruption to legacy outsourcing models and uncertainty over when revenue growth may pick up further.

The decline in the IT stocks came as the broader market also remained weak on Monday.

Sensex, which opened 822 points or 1.1 percent lower at 73,421 points, further fell to around 74,318 points compared to the previous close of 74,243 points.

Nifty opened 1.2 percent lower at 23,080 points. The benchmark further declined by 1.2 percent to 23,070 points compared to the previous close of 23,416 points.

Out of the 3,098 stocks trading on the National Stock Exchange on Monday, 2,118 stocks declined while 891 advanced, showing the breadth of the sell-off in the market.

Among the sectoral indices, Nifty Metal remained the biggest loser with a decline of 1.28 percent. It was followed by Nifty Auto which lost over 1.1 percent.

The fresh sell-off in the market was triggered by the renewed attacks between Iran and Israel.