Tech Stocks Take a Dive Amidst Market Selloff

On Wednesday morning, IT stocks saw a significant decline, paralleling losses in US tech companies. Major Indian IT firms, including LTIMindtree and Infosys, experienced notable declines, contributing to a drop in the BSE IT index. This downturn follows a broader trend of investor shifts away from high-value tech stocks.

In a stark reflection of the US tech market's recent downturn, Indian IT stocks experienced a significant decline on Wednesday morning. Major players like LTIMindtree, Infosys, and Tech Mahindra all saw their shares drop by more than six percent.

This selloff in technology shares was a pivotal factor dragging down the broader market, evidenced by the BSE IT index's drop of 5.83 percent, falling to 34,984.16. Investors appear to be reallocating their capital from high-value tech stocks to those in the broader economy.

In the US, the Nasdaq Composite index fell 1.43 percent on Tuesday, impacting other major indices. With the Dow, S&P 500, and Nasdaq all posting losses, the Indian market mirrored these declines, with the BSE Sensex trading 140.22 points lower at 83,604.59.

(With inputs from agencies.)