TCS, Infosys, Tech Mahindra, HCL Tech: IT shares top losers amid market rally today, here's why 

Shares of Indian IT firms were the major laggards in Thursday's trade after the US Federal Reserve raised its lending rate by 25 basis points (bps) to 4%. The central bank signaled one more increase could be on anvil before year-end.

IT stocks were the top losers on Thursday, bucking the trend in Sensex and Nifty. HCL Technologies Ltd (1%, TCS (1%), Infosys (0.49%) and Tech Mahindra Ltd (1%) were among the top Sensex losers in the current session.

The raising of interest rates in the US does not bodes well for the Indian IT firms. Due to tighter monetary policy, companies cut client technology budgets.

As non-essential software projects face delay, revenue growth slows for major Indian IT exporters.

Shares of Indian IT companies, which earn a majority of revenue from global clients, have taken a beating in the last one year due to Trump tariffs, AI-led disruption and the ongoing US-Iran war. Indian IT firms earn over 50% of their revenue including the US, turned sentiments around the IT stocks weak today.

BSE IT index was among the top losers in the BSE sectoral indices, slipping 74 points to 27,866 in the current session today.

Nifty IT index has slipped 20.54% in the last one year. On similar lines, the BSE IT index has crashed 22% during the same period.

Among other IT stocks, Zensar Technologies (3.74%), EMudhra (2.7%), Quickheal Tech (2.61%), NINtec Systems Ltd (1.41%) and Hexaware Technolgies (1.32%) were the top losers on the BSE IT index.

The NSE IT index has underperformed the Nifty by around 12% on a calendar-year-to-date basis. The index has slipped 23.22% this year as US-Iran war and Trump tariffs dented investor sentiment on the Dalal Street.

BSE IT index too has slipped 24.13% this year.

With growth remaining muted, competition intensifying and the scope for margin expansion appearing limited, JM Financial maintains a cautious view on the broader Indian IT services sector and favours a selective approach to stock picking.

Meanwhile, Sensex rose 213 pts to 74,549 and Nifty gained 100 pts to 23,318 in early deals today.