IT stocks under pressure as JP Morgan reiterates its negative stance

Shares of Infosys, Tata Consultancy Services, Wipro and major IT services companies in India were under pressure on Wednesday. This drop came in response to a negative stance reiterated by foreign brokerage firm JP Morgan towards the entire IT services sector.

The brokerage firm stated its expectation for disappointment in the first quarter of FY24 and current growth expectations for the second half of FY24 for every IT services firm.  Notably, JP Morgan has placed Infosys, TCS, and Mphasis on a negative catalyst watch.

At 11:47 am The S&P BSE Information Technology index was trading nearly half a per cent lower at 29,100.45 levels. NIFTY IT index was trading 0.49 percent down at 29,761.25.

In large-cap IT companies, shares of Infosys are trading down 0.66 percent, Wipro shares are down 0.21 percent, TCS is trading at Rs 3,242 down 0.12 percent, shares of HCL Technologies is down 0.2 percent and Tech Mahindra is trading down 0.03 percent  from the previous close on the BSE.

In mid-cap IT companies Persistent Systems is trading down 2.24 percent, shares of Coforge are down 0.49 percent, Mphasis is down 0.59 percent and LTI Mindtree is trading down over 1 percent.

Among other IT stocks KPIT Tech is the biggest loser on the S&P BSE It index, down nearly 5 percent, Cigniti, Ramco Systems, and Mastek are trading down 1.5 percent to 2 percent.