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What is the story about?
Shares of Indian IT companies, Infosys Ltd., TCS Ltd., Wipro Ltd., Tech Mahindra Ltd., HCLTech Ltd., and other midcap peers like Persistent Systems Ltd., Coforge Ltd., and others could face more pressure on Friday, February 13, after another round of overnight selling in the US markets.
The US-listed shares of Infosys (ADRs) fell 10% on Thursday night, while those of Wipro were down nearly 5%. IT stocks, particularly the software-linked companies, have been rattled since the start of the month on concerns of AI causing a significant disruption to the industry.
SaaS-linked companies did not sell off as much overnight, but big tech did, and the fears of AI disruption roiled sectors across Wall Street, from banking to real estate and even trucking and logistics.
Read more: Explained: Why Infosys, Wipro ADRs fell up to 10% overnight
IT stocks were the biggest underperformers during Thursday's trading session, with TCS' market capitalisation falling below the mark of ₹10 lakh crore for the first time since December 2020. Infosys, which has the highest Mutual Fund exposure among Indian IT companies, also fell over 5% on Thursday. Other IT stocks were not too far behind in terms of selling.
The market capitalisation of Infosys has also slipped below the mark of ₹6 lakh crore this week.
Also read: US Market Sell-Off: Real estate stocks tumble as AI disruption fears grow
Such has been the selling pressure in IT that India's largest lender, State Bank of India (SBI), has replaced TCS as the fourth-largest company in India by market capitalisation. The rally seen in shares of SBI after its results has taken its market capitalisation past the ₹10 lakh crore mark, putting it behind only Reliance Industries, HDFC Bank and ICICI Bank.
Shares of TCS were down 6% on Thursday to end at ₹2,741.9, while Infosys also fell by a similar quantum to end below the mark of ₹1,400. Both the Nifty 50 heavyweights have declined between 14% to 16% over the last one month
The US-listed shares of Infosys (ADRs) fell 10% on Thursday night, while those of Wipro were down nearly 5%. IT stocks, particularly the software-linked companies, have been rattled since the start of the month on concerns of AI causing a significant disruption to the industry.
SaaS-linked companies did not sell off as much overnight, but big tech did, and the fears of AI disruption roiled sectors across Wall Street, from banking to real estate and even trucking and logistics.
Read more: Explained: Why Infosys, Wipro ADRs fell up to 10% overnight
IT stocks were the biggest underperformers during Thursday's trading session, with TCS' market capitalisation falling below the mark of ₹10 lakh crore for the first time since December 2020. Infosys, which has the highest Mutual Fund exposure among Indian IT companies, also fell over 5% on Thursday. Other IT stocks were not too far behind in terms of selling.
The market capitalisation of Infosys has also slipped below the mark of ₹6 lakh crore this week.
Also read: US Market Sell-Off: Real estate stocks tumble as AI disruption fears grow
Such has been the selling pressure in IT that India's largest lender, State Bank of India (SBI), has replaced TCS as the fourth-largest company in India by market capitalisation. The rally seen in shares of SBI after its results has taken its market capitalisation past the ₹10 lakh crore mark, putting it behind only Reliance Industries, HDFC Bank and ICICI Bank.
Shares of TCS were down 6% on Thursday to end at ₹2,741.9, while Infosys also fell by a similar quantum to end below the mark of ₹1,400. Both the Nifty 50 heavyweights have declined between 14% to 16% over the last one month
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