BSE IT index sheds 4.76% in biggest single-day drop in nearly two years

Infy's weak numbers triggers selloff in other IT shares

The BSE IT index, a gauge for the performance of leading tech companies, saw its biggest decline in nearly two years of 4.76 per cent, after disappointing earnings posted by Infosys triggered a broad-base sell-off. The Nifty IT index fell 4.6 per cent.

The profit posted by Infosys, the country’s second-largest software services provider, for Q4FY22 was below expectations because of margin pressure amid rising costs and lower utilisations. Its results stoked fears that the post-pandemic boom could be over and there could be de-rating in stocks because of normalisation of growth.

Shares of Infosys closed 7.3 per cent lower at Rs