Weak Guidance Drags HCLTech | IT Stocks Under Pressure

HCLTech shares plunged over 8% in intraday trade after a disappointing Q4 performance and weak FY27 outlook. While net profit rose 4.2% YoY and revenue grew 12.4%, margins took a hit, with EBIT margin falling sharply to 16.5% from 18.6% QoQ. The bigger concern is guidance - revenue growth is pegged at just 1 - 4% in constant currency, below Street expectations. Services growth also remains muted, raising concerns over demand recovery. With dollar revenue missing estimates and profitability under pressure, the stock reaction has been sharp. The weakness in HCLTech is also weighing on the broader IT sector. Is this a short-term correction or a deeper concern for IT stocks?