IT stocks drop as brokerages raise concerns; Nifty IT index falls 2%

IT stocks currently trade at a 7 per cent discount to Nifty

Shares of information technology (IT) services companies fell on Friday, after analysts said the industry’s growth momentum faces headwinds in the form of weakening macro indicators. The Nifty IT index fell 2 per cent, the most in a month. In comparison, the benchmark Nifty fell less than half a per cent.

All the 10 components of the Nifty IT index ended with losses, with industry leaders Infosys and Tata Consultancy Services (TCS) leading the decline. Infosys fell as much as 4 per cent, while TCS fell nearly 3 per cent before recouping some of the losses. 

“We already see signs