India's IT index falls to three-year low on weak earnings outlook, demand worries

India's Nifty IT index fell 3.6% to its lowest level since May 2023 as investors reacted to a weak earnings outlook and concerns about slowing demand for traditional IT services. The move points to deteriorating sentiment across the sector, with guidance and demand expectations driving the selloff. The impact is likely meaningful for Indian IT names, though not broad enough to be market-wide.

Analysis

India's Nifty IT index fell 3.6% to its lowest level since May 2023 as investors reacted to a weak earnings outlook and concerns about slowing demand for traditional IT services. The move points to deteriorating sentiment across the sector, with guidance and demand expectations driving the selloff. The impact is likely meaningful for Indian IT names, though not broad enough to be market-wide.