Mumbai: Shares of IT sector companies have fallen by more than 22 percent in the Indian stock market on fears of a US economic slowdown, entering a bear market.
Indian IT sector stocks fall on US recession fears
In terms of the stock market, if any company’s stock or index falls by more than 20 percent from its recent high, it is considered to have entered a bear market.
The Nifty IT index, which hit a new 52-week high in December last year, has fallen by more than 22 percent till yesterday, entering a bear market.
Of the country’s top 10 IT companies, eight companies including Infosys, HCL, Tech, and Tech Mahindra have seen a decline.
US President Trump’s tax policy is said to be the main reason for the continuous decline in IT company stocks. It is feared that its impact will cause a slowdown in the US economy.
The US is not only the largest market for Indian IT companies, but also a significant source of revenue.
The impact on the US economy will have a severe impact on the growth of Indian IT companies. Recently, the negative forecast issued by international investment bank Morgan Stanley on the growth of Infosys, the second largest IT company in our country, has also questioned the growth of other IT company stocks.
Nifty IT index companies saw a decline
Companies Decline (in percent)Infosys 6Wipro 5.3Tech Mahindra 4.30HCL Tech 3.15L&T Tech 5.35Mphasis 4.00Coforge 3.59Persistent 3.31
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