Indian shares log worst week in over two months as IT stocks slump

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Indian shares slid on Friday to log their worst week in over two months as IT stocks tumbled as HCL Technologies' warning of a potential slowdown in client spending in the industry's key U.S. market.

The Nifty lost 1.07% for the week, while the Sensex fell 1.09%, logging their biggest one-week slides since the week-ended Sept. 30., the second most influential sectoral group on the Nifty, tumbled 3.14% on the day and more than 6% for the week. The weekly drop was the steepest since mid-September when IT stocks fell in tandem with U.S tech stocks.

The decline on the day was sparked by HCL Chief Executive C. Vijayakumar's warning that revenue growth for the current financial year would be at the"The commentary raised doubts over the pace of recovery in I.T. space", said Narendra Solanki, head of equity research at Anand Rathi Shares & Stock Brokers.Analysts said investors would also remain cautious ahead of key announcements on the closely-watched U.S.

Earlier, the markets had opened higher as crude prices hovered near one-year lows and on hopes of a global demand revival due to China's easing of strict COVID-19 restrictions. But the mood quickly soured after HCL's warning, which weighed on almost all sectors. The PSU bank index

 

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