Infosys to LTIMindtree: What Triggered the 6% Crash in Nifty IT Today

Indian IT stocks fell sharply after a heavy sell-off in US technology shares overnight. The Nasdaq slipped 1.4%, while the S&P 500 and Dow Jones also ended lower as investors reacted to tech earnings and rising competition in the AI space.

Big names like Nvidia dropped nearly 3%, and stocks such as Amazon and Microsoft were also under pressure. Since Indian IT companies depend heavily on US clients, weakness in US tech stocks directly hit sentiment back home.

Indian IT ADRs Slide in the US Market

The fall in US tech stocks led to a sharp drop in Indian IT companies’ ADRs traded in New York.
Infosys ADR declined 5.5%, while Wipro fell nearly 5%.

ADRs act as an early indicator for Indian markets because US trading happens while Indian markets are closed. Weak ADR performance often leads to selling pressure on NSE and BSE the next day.

Strong Rupee Hurts IT Earnings Outlook

The Indian rupee jumped sharply and ended at 90.27 against the US dollar, becoming the best-performing Asian currency for the day. The rise was supported by a trade deal between India and the US, falling crude prices, and expectations of foreign inflows.

A stronger rupee is bad news for IT companies. Most IT firms earn in US dollars but spend mainly in rupees. When the rupee strengthens, their profits and margins come under pressure.

Stock Market Impact

• Nifty IT Index fell nearly 6%
• Persistent Systems dropped 7.5%
• Infosys, Coforge, LTIMindtree, and other IT stocks fell 5–7%

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Conclusion

The sharp fall in IT stocks today was driven by global tech weakness, poor ADR performance, and a strong rupee hurting earnings visibility. Until global tech sentiment stabilises and currency pressure eases, IT stocks may remain volatile.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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