Infosys, the largest loser among Nifty IT index, was down 2% at Rs 680, falling 4% in past two trading days. The stock, however, had outperformed the market by surging 14% from its recent low of Rs 619 on November 21, as compared to a 2% rise in the benchmark index till Friday.
Wipro was, too, down 2% at Rs 333 in intra-day trade, after gaining 7% in the last three weeks.
A significant and faster-than-expected slowdown in the US/global economy, the rise in interest rates in the US and trade war with China could be the catalyst. Faster-than-expected return to Indian ‘financials’ as interest rates stabilise and stressed asset provisioning peaks are the major downside risks for IT sector, according to Nirmal Bang Equities.