Tech Mahindra shares declined 4.22% to Rs 1,565.50 in early trade on Thursday, extending losses amid a broad sell-off in global and domestic IT stocks.
The fall comes after softer-than-expected US retail sales data raised concerns about slowing demand in the United States, the largest revenue market for Indian IT companies. Investors also remained cautious ahead of key US economic data, adding pressure to technology and software stocks globally.
Global IT stocks under pressure
The weakness was not limited to Tech Mahindra. Several global and Indian IT names saw sharp declines:
- Infosys ADR fell 5%
- Wipro dropped 4.4%
- Globant declined 7.5%
- EPAM slipped 7%
- Accenture fell 4.3%
- Cognizant shed 4.9%
The sector-wide sell-off reflects concerns over potential moderation in enterprise technology spending if US consumption and growth slow.
Why US data impacts Tech Mahindra
Tech Mahindra generates a significant share of its revenue from North America, particularly from telecom and enterprise clients. Any signals of economic slowdown in the US tend to impact sentiment around IT services companies due to expectations of delayed client spending or reduced deal flow.
As global risk appetite weakens and software stocks face renewed selling, Tech Mahindra is trading lower in line with the broader IT sector trend.
