IT stocks remain under selling pressure

The shares of information technology (IT) companies have been under the hammer over the past week. As the IT index just recovered from the Q1 result blow, concerns of global slowdown resurfaced to plague the IT space. This saw the IT index plunging almost 15% in last six trading days compared to around 9% drop in the benchmark index Sensex.

Most of the frontline IT shares such as Infosys, Wipro and HCL Technologies are trading near their 52-week lows.

The IT space has been the most affected since the start of the week, where the markets have seen a record selloff due to Standard and Poor cutting the US credit rating from AAA to AA+. The weakness on IT counters comes as no surprise as India's software services sector gets more than half of its revenue from the United States.

"Although the global economic environment is a cause for concern, it is not likely to impact the Indian IT industry in the near-term," the National Association of Software & Services Companies (Nasscom) said in a statement on Monday. The same view was shared by a leading IT industry lobby group.

IT heavyweights Infosys and TCS have shed 14% each, while Wipro lost 11%.

The IT index is currently down nearly 3% and continues to be the top loser among the sectoral indices.