The Nifty IT index witnessed a broad-based decline on April 7, 2025, as weak global cues and profit-booking led to a sharp correction across key technology counters. Mphasis, Infosys, Coforge, HCLTech, and Oracle Financial Services Software (OFSS) were the top five laggards of the day.
Despite strong long-term growth prospects for the Indian IT sector, the day’s losses reflect investor nervousness around global tech spending and possible margin pressures due to rising costs.
Mphasis led the IT pack lower, falling over 5% in a single session. The stock hit its 52-week low of ₹2,044.55 during intraday trade, reflecting persistent selling pressure. The fall follows a weak monthly trend, with the stock already down 8.69% over the past 30 days.
Infosys also witnessed sharp selling and touched its 52-week low of ₹1,307.00 before closing just below the day’s high. The company has seen significant pressure recently, declining over 17% in the past month. Rising concerns about deal deferrals and slower discretionary spending in global markets could be weighing on investor sentiment.
Coforge shares dropped over 3% on heavy volume, extending their downward trend. The stock has been among the most volatile in the Nifty IT space, having lost close to 18% in the past month alone. However, it remains in the green on a year-on-year basis.
HCLTech, another heavyweight in the IT index, slipped over 3% amid rising concerns about margin pressure in the upcoming quarterly earnings. The stock has fallen more than 11% over the past month, underperforming most of its peers.
OFSS was also among the top losers, shedding nearly 2.6%. The stock continues to remain near its 52-week low and has underperformed the broader IT index over the past year.
The Nifty IT index faced heavy selling pressure on April 7, with all top constituents ending in the red. While the sector remains a long-term favourite for many investors due to its export-driven revenue and digital transformation tailwinds, short-term sentiment has been dented by concerns over global tech demand, deal delays, and earnings visibility.
With the Q4 earnings season approaching, investor focus will now shift to forward guidance and management commentary from key IT players. Any signals of softness in client spending or hiring trends could further weigh on sector performance in the near term.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 7, 2025, 9:41 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and asset management, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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