The country’s major IT companies like Services (TCS), Infosys, Wipro and HCL Tech are decreasing in the equity market. In April, the Nifty IT index has come down 9.5 per cent so far while the Nifty 50 has gained 1.4 per cent. Today the Nifty IT index rose 0.23 per cent but the benchmark index jumped 1.8 per cent.
As a result, there has been a sharp decline in the IT service sector load in the Nifty 50 index. The weight of the region in the index is now 10.2 percent, which is the lowest in the last 17 years. The area was 9.7 percent in March 2008, just before the global financial crisis began. With this, the weight of the IT sector in the benchmark index has decreased by 17.7 per cent in March 2022 to 42 per cent.
Due to the recent decline in the Nifty IT index, it has lost the Kovid-19 epidemic and whatever lead during the 20-year period.
The total market capitalization of the top 5 IT companies included in the Nifty 50 was Rs 25.5 lakh crore while the total market capitalization of Nifty 50 companies was Rs 189.4 lakh crore. The recent poor performance of the IT sector and its weight in the index can be compared to the poor performance of the industry before the global financial crisis in 2008. Since 2001, the IT sector in the index was 13.8 percent on average.
This is the worst annual beginning of shares of IT sector in twenty years. The Nifty IT index is now 23 per cent below the calendar year 2025, its worst performance since the introduction of the index in March 2004. The index declined by 18.3 percent in the first four months of 2022. Analysts said that in the fourth quarter of FY 2025, the results of companies are being weakened by expectation and in financial year 2026, the IT shares are being sold in the IT shares due to softening.
G Chokalingam, founder and CEO of Econtes Research, said, “The income of IT companies in the first dollars increased annually by 2 to 4 percent but it is expected to be stable or declined in FY 2026. The income of TCS and Infosys has either decreased or remained stable in FY 2025, causing fear in investors about the income hike of this sector.
First Published – April 17, 2025 | 9:58 PM IST
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