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IT shares fall up to 41% in 2022 amid slowdown, outlook concerns

IT shares fall up to 41% in 2022 amid slowdown, outlook concerns

The Russia-Ukraine war, negative sentiment around the Q4 earnings season and continuous selling by FIIs has strengthened the grip of bears in the Indian market.

The Nifty IT index has fallen from 37,071 to 27,708 today, translating into a loss of 9,363 points or 25.25 per cent on a year-to-date basis. The Nifty IT index has fallen from 37,071 to 27,708 today, translating into a loss of 9,363 points or 25.25 per cent on a year-to-date basis.

Shares of Indian IT companies have emerged among the major sectoral losers this year. The Russia-Ukraine war, negative sentiment around the Q4 earnings season and continuous selling by FIIs has strengthened the grip of bears in the Indian market.

The BSE IT index has lost 25 per cent or 9,524 points in 2022. In comparison, the 30-stock Sensex has declined 7.44 per cent or 4,336 points during the period.

Similarly, the Nifty IT index has fallen from 37,071 to 27,708 today, translating into a loss of 9,363 points or 25.25 per cent on a year-to-date basis.

FIIs have sold equities worth over Rs 1.60 lakh crore in the Indian market this year, making sentiment weaker around the IT stocks.

On the earnings front, a majority of IT players have missed the consensus growth expectations. With the margin outlook of the IT firms remaining moderate in Q4, IT stocks have lost further ground.

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Slowdown in the economic growth, along with the revenue and margin pressure of the companies has darkened the outlook for these firms.

A look at year-to-date performance of IT shares revealed that Tech Mahindra, TCS, Oracle Financial Services and Wipro were among the major losers falling up to 41.46 per cent in 2022.

The IT stocks were trading in the red in the current session too.

Shares of Wipro fell 3.20 per cent to Rs 445.35 against the previous close of Rs 460.05 on BSE. Wipro stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Shares of another IT major TCS slipped 3.02 per cent to Rs 3,188.9 against the previous close of Rs 3288.5 on BSE. TCS stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Oracle Financial Services stock touched an intraday low of Rs 3093.2, down 2.64 per cent on BSE. The share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Just Dial stock fell 3.35 percent to Rs 660.2 against the previous close of Rs 683.10. The IT stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Infosys stock fell 1.42 per cent to Rs 1420 on the BSE today. Shares of Infosys are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Cyient stock touched an intraday low of Rs 742.95, falling 4.46 per cent on BSE.  The IT stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

HCL Tech stock fell 2.61 per cent to Rs 966.1 against the previous close of Rs 991.5 on BSE. The stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Tech Mahindra stock too declined 4.82 percent at Rs 1,045.1 against the previous close of Rs 1,098.05 on BSE. The IT share is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.