Wipro and Persistent Systems also fell over 1%, taking the index down to an intraday low of 37,365.90, an intraday decline of 2.4% from Friday’s close.Others like Tech Mahindra, TCS, Oracle Financial Services Software (OFSS) and Coforge fell by up to 0.8%.
The only gainers in the 10-share index were LTIMindtree and Mphasis, which rose 0.8% and 0.4% respectively.
Sentiments worsened as US President Donald Trump’s fresh threats about imposing additional tariffs on India over its purchases of Russian crude were a non-starter, market observers said.
Trump issued a new tariff warning to India on Monday, saying Washington could increase duties on New Delhi if it does not “help with the Russian oil issue”, directly linking the threat to the ongoing war between Russia and Ukraine, ToI reported. Meanwhile, negative views from some foreign brokers ahead of earnings season could also have a sentimental impact on the stock.
Citing Citi Research, Reuters said the recovery in the sector is likely to be slow and uneven, while valuations will remain unattractive.
Meanwhile, CLSA has also come out with a note on the IT sector, recommending investors to reduce their positions in IT stocks, CNBC-TV18 reported. It said the brokerage expects the third quarter to be a weak quarter for the technology pack.
Sector-wise, IT stocks have been among the best performing stocks in the past three months, only behind Nifty PSU Bank (15%) and Nifty Metal (11%).
The best performer is Persistent Systems from the mid-range with a return of 22%, followed by LTIM (18%). HCL, Tech Mahindra, Infosys and TCS have also delivered double-digit returns during this period.
Wipro has returned 9%, while Mphasis and Coforge are among the major laggards at almost 2%. OFSS is down 14% and is the worst performer.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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