Losing favour: IT sector weighting in Nifty50 at 5-year low of 12.2%

Gives up most of the gains in market cap in post-pandemic period

The recent sell-off in IT stocks such as Infosys and Tata Consultancy Services (TCS) has resulted in a sharp decline in the IT sector weighting in the Nifty50 index.

The sector’s weighting in the index has slipped to a five-year low of 12.2 per cent, down from the 17.7 per cent at the end of March 2022. The top IT companies —TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra — accounted for 13.6 per cent of the index at the end of March this year.

The combined market capitalisation of the big five IT companies is down 8.2 per cent