The Nifty IT index lost over 1% in early trade on Thursday following heavy sell-off in S&P 500 and Nasdaq for the second straight session on Wednesday.
According to analysts, the recent correction in Nasdaq has resulted in some profit-booking in IT stocks. But the overall trend looks positive as certain heavyweights have witnessed good buying interest in the last couple of months. So one should keep a ‘buy on dip’ approach with stock specific focus, said an analyst.
The major laggard on the Nifty IT index was L&T Technology Services Ltd which lost 2.07%, followed by LTI Mindtree Ltd and Tata Consultancy Services Ltd, down by 1.8% each, and Tech Mahindra Ltd and Infosys Ltd, down by 1.7%, and 1.5%, respectively.
In Wednesday's trading session, the IT index closed 1.46% higher. "Yesterday, the IT space was showing great strength , today it's down , but overall it's positive and buying can come at lower levels. This dip should be considered as a buying opportunity," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
According to analysts, the higher interest rates and frequent rate hikes are resulting in less technology spendings by corporations.
