The shares of Indian IT companies sharply crashed on Wednesday, erasing nearly all gains recorded during the previous three-day gaining streak. Analysts however advised investors planning to buy the dip to exercise caution, listing several reasons why.
The Nifty IT index plunged nearly 6% on Wednesday, led by an 8% crash in TCS shares which recorded their sharpest single-day drop since the infamous COVID-19 crash of 2020. Persistent Systems, LTI Mindtree and Coforge shares sank nearly 7%, while Tech Mahindra and HCL Tech shares plunged 5-6%. Infosys shares tumbled 4%, while Wipro shares closed 3% lower.
