Home / Business and Economy / Indian Stocks Dip as IT Sector Faces Demand Uncertainty
Indian Stocks Dip as IT Sector Faces Demand Uncertainty
24 Jul
Summary
- Indian stock benchmarks fall amid IT sector woes
- Coforge and Persistent Systems shares plunge 9% and 8%
- Uncertainty over global trade tariffs clouds IT sector outlook
On July 24, 2023, India's stock benchmarks edged lower in early trade, as a fall in IT stocks amid uncertainty about demand outweighed optimism over a potential free-trade agreement with Britain. The Nifty 50 index was down 0.17% to 25,179.65 points, and the BSE Sensex lost 0.2% to 82,559.8.
The IT sector was the worst performer, with the IT index falling 1.7%. Coforge and Persistent Systems saw their shares plunge around 9% and 8%, respectively, while Infosys shed 1% after their quarterly results. Analysts noted that structural headwinds triggered by uncertainty over global trade tariffs continue to cloud the sector's outlook, despite the firms posting profit growth.
Meanwhile, the highly-anticipated India-UK free-trade agreement, which is expected to reduce tariffs on goods such as textiles, whisky, and automobiles, should boost market sentiment, according to analysts. However, the market is unlikely to see major upside until there is certainty on the U.S. trade deal.
