Infosys and Wipro are leading the selloff in IT shares over concerns of risk to revenue growth as spending by US clients slows down due to global uncertainties.
International brokerage Morgan Stanley's latest note cited shifting global macroeconomic environment and technological changes as increasing risks for the tech sector, potentially putting valuations and revenue growth at risk.
The fall in the share prices pushed Nifty IT down nearly 2 percent in early trade to its lowest level since July 2024, with TCS, HCLTech, Infosys and Tech Mahindra emerging as top losers on Sensex. Nifty IT is down about 16% so far this year.
According to Morgan Stanley, the revenue growth and valuations in the IT sector face strong downside risks amid global uncertainties, prompting it to cut target prices for domestic IT majors.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
