IT stocks under pressure: TCS, Infosys shares decline 2% despite market surging 1,000 points

Mumbai: IT stocks came under pressure led by losses in Infosys and TCS in early trade on Monday, even as the broader market witnessed heavy buying after exit poll results suggested another term for the ruling National Democratic Alliance (NDA) government.

The IT index was the only one trading in the red. All other sectoral indices were in the green.

Besides, heavyweight IT stocks like Infosys and TCS were trading in the negative territory.

Infosys fell to Rs 706.85, down 2.34 percent over its previous close of Rs 723.80 in early hours on Monday.

 IT stocks under pressure: TCS, Infosys shares decline 2% despite market surging 1,000 points

Representational image. Reuters.

Similar movement was seen on the TCS counter as well, where the stock opened at Rs 2,126.00, then fell to a low of Rs 2,050.25, down 2.19 percent over its last close.

The S&P BSE IT index was trading at 15,340.01, down by 69.11 points or 0.45 percent.

Some of the other IT stocks that were trading in the red include Larsen & Toubro Infotech (down 1.37 percent), Mphasis (down 0.98 percent), Tech Mahindra (down 2.40 percent), Mindtree (down 0.08 percent), Allsec Technologies (down 0.64 percent) and Hexaware Technologies (down 0.25 percent).

The decline in the IT counter assumes significance as the broader market witnessed heavy buying in the morning hours.

The BSE-benchmark Sensex skyrocketed over 900 points, while the broader NSE Nifty jumped over 200 points in morning trade.

Market analysts said the rising rupee is expected to add pressure to IT stocks as most of these companies depend heavily on exports.

The rupee appreciated 79 paise to 69.44 against the US dollar in opening trade Monday.

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Updated Date: May 20, 2019 12:39:32 IST