TCS, Infosys, Other IT Stocks Decline As Nifty IT Slumps On Weak US Outlook; Key Points

SOURCE : NEW18 NEWS

Last Updated:May 19, 2025, 09:51 IST

Indian IT stocks came under pressure on May 20, with heavyweights like TCS and Infosys leading the decline; What investors should know

Indian IT stocks came under pressure on May 20, with heavyweights like TCS and Infosys leading the decline, dragging the Nifty IT index lower.

The decline in IT stocks followed Moody’s downgrade of the US government’s credit rating to AA1 from AAA, citing elevated debt levels and interest costs “significantly higher than similarly rated sovereigns.” As IT firms earn a sizable portion of their revenue from the US, the Nifty IT index slipped 0.8%.

Why Are IT Stocks Falling Today?

The sector faced strong selling pressure due to a muted economic outlook for the United States, a key market that contributes significantly to the export revenues of Indian IT firms. The cautious sentiment around US growth raised concerns over future deal pipelines and client spending, prompting investors to offload positions in technology shares. As a result, the Nifty IT index underperformed broader markets, reflecting investor nervousness over global demand trends impacting the Indian IT sector.

First Published:

May 19, 2025, 09:44 IST