Business Standard

IT stocks plummet as Nomura and JP Morgan raise growth concerns

BSE IT index drops 3.2%; Midcaps see deeper cuts

stock markets

Samie Modak Mumbai
The technology pack saw fresh selloff on Wednesday after Nomura warned of sharp deceleration in growth rates for the sector as companies scale back their tech spends amid a challenging micro environment. The brokerage downgraded several stocks in the sector and reduced their target prices between 16 and 38 per cent.

Nomura’s report comes just days after JP Morgan warned of “dark skies” for the domestic IT sector as it believed “peak revenue growth behind us and EBIT margins trending down from inflation, mean reversion.”

The BSE IT index fell 3.2 per cent, extending its year-to-date selloff to 26 per

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First Published: May 25 2022 | 6:30 PM IST

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