Nifty IT Index Falls 11% in September

Business Standard · stocks

The Nifty IT index experienced a significant downturn in September, falling 11% while the Nifty 50 declined by 6%. Several major IT companies, including Infosys, Wipro, and Tata Elxsi, hit their 52-week lows on the NSE. This decline is attributed to a combination of slowing global growth, high interest rates impacting technology spending, and the disruptive influence of Generative AI on traditional IT service models. Brokerages express caution due to cost optimization by clients but remain optimistic about the long-term structural growth driven by AI integration and cloud services.