IT Sector Hits Rough Patch as Major Firms Post Weak FY25 Results

Just before the global financial crash in 2008, the IT sector weightage in the Nifty 50 Index stood at around 9.7% and subsequently climbed to a super high weightage of around 17.7% in 2022.

- RAJIV KAPOOR

Now, when the Indian stock markets have been on a roll in the last two weeks, the Nifty IT index has shed a whopping 9.5% so far in the month of April and looks set to empty all its gains made over the last two decades.

Wipro has posted disappointing Q4FY25 financial results, with it being worst hit by losing market share in Europe, posting declining revenue and profit growth, and most of its verticals, like healthcare, consumer technology, telecommunication, banking, and financial services segment, seeing a fall in revenue growth.

After Wipro, the other bellwether large IT company, Infosys, also predicted weaker revenue growth for FY26 on the back of global uncertainty and a cloudy environment where clients are seeing pressure on their budgets, making the IT sector look pretty disruptive in the current scenario.