The Nifty IT index dropped nearly 3 percent on Tuesday as investors booked profits ahead of the U.S. Federal Reserve’s upcoming meeting. Major IT stocks such as Infosys, TCS, and Tech Mahindra led the decline, with all 10 components of the index trading in the red, down by 2-5 percent.
According to Osho Krishan, Technical and Derivative Analyst at Angel One, the sell-off is more on account of profit booking than a correction phase. “Given the lofty levels of the IT companies and the overall market, both on technical and fundamental parameters, the profit booking is happening,” he said.
Other frontline Nifty IT stocks such as Wipro tanked 0.60%, LTIMindtree 0.14% and Tech Mahindra 0.04%. The sector emerged as a drag on the index.
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Source: Moneycontrol
News Desk
