HCL Technologies, an Indian IT services company, fell 2.1% on Friday, underperforming the broader market. The company’s stock price dropped to Rs 1,236.30, making it one of the top decliners on the NSE Nifty50 index. HCL’s decline was attributed to concerns over a potential global downturn in demand, particularly in the technology and software space. The company’s recent earnings had hinted at slower-than-expected growth, which may have triggered selling in the stock. Despite the drop, HCL’s shares are still up 15% year-to-date, thanks to a strong performance last year.
The company’s IT services index, which tracks the performance of IT companies, also fell 0.8%, its second consecutive negative day. The broader Nifty50 index, on the other hand, rose 0.3%. Market analysts attributed the underperformance to concerns over the potential impact of the global economic slowdown on the sector’s growth prospects. As the market awaited clarity on the outlook, investors took a cautious approach, selling off shares of IT companies, including HCL Technologies. The company’s stock may experience further volatility in the near term, pending the resolution of these uncertainties.