IT stocks have entered into a bloodbath during the second half of Wednesday's trading session despite Democrat making a clear win in the Georgia runoff election. IT stocks are in focus as major tech-majors are set to announce their financial performance for the quarter ending December 2020. However, the sector faces a broad-based selloff with heavyweights TCS, Infosys and HCL Tech dragging it most. Investors are also cautious amid rising Coronavirus cases in major economies which overshadows optimism of early vaccine rollout.
At around 2.45 pm, Nifty IT was trading at 25,413.25 down 355.90 points or 1.38%. The index has plunged to an intraday low of 25,240.50.
On the index, 8 stocks declined while only 2 stocks advanced.
Naukri.com took lead in the underperformers list tumbling by nearly 5% followed by L&T Infotech and Coforge down between 3-4%.
Major stocks like
HCL Tech dives over 1.5% followed by Tech Mahindra, Mindtree, Infosys and
TCS plunged between 1-1.5%.
TCS will present its financial performance for Q3FY21 on January 08, 2021, while peers Infosys and Wipro will announce their result on January 13, 2021.
On the upside, Mphasis took lead surging by 2.5% followed by a marginal gain from Wipro.
On the global front, Wall Street stock futures tumble after Democrats won one-of Georgia’s run-off elections with Raphael Warnock defeating incumbent Kelly Loeffler by more than 40,000 votes. Meanwhile, the other Democrat Jon Ossoff was leading ahead of the sitting Republican Senator David Perdue by over 3,600 in the runoff as the counting continues.
A Warnock and Ossoff win together would mean rising in the number of Senate from current 48 to 50 which will result in splitting the majority of Republicans.
Notably, with both Congress in Democratic control in control would further pave an easy way for President-elect Joe Biden agendas.
IT stocks tracked US stock futures downside with the technology-focused Nasdaq Composite index tumbling by over 1%.