IT Stocks have seen a fall in the stock market from last year. Apart from this, the sector has also laid out several jobs. There was a boom in both IT stocks and IT jobs during and after corona. Several factors are contributing to the fall of stocks in the share market. Wars also had a major impact on the growth of the tech sector. Russia’s Ukraine conflict has changed the game of the stock market. Let us have details about the major reasons and know why are IT stocks falling.
Why Are IT Stocks Falling?
The world has seen several issues due to the Russia-Ukraine war. Russia being the major center of crude oil export has led to inflated food prices. The profit margin of the IT company fell after the war. Also, covid had an impact on the IT sector. The work-from-home facility led to more use of tech by the people. The increase in demand created more supply along with the growing IT stocks. However, after the world recovered from COVID-19, everything started shifting back to offline modes It led to a fall in the demand creating a fall in the stock value. The IT sector also laid off several people from their jobs last year.
Another major reason is the fall in the rupee value. The dollar has appreciated a lot against the Indian rupee in the last few years. It has weeken Indian Ruppee. It leads to a decrease in the stock price as India is an importing country. It exports less in comparison to the number of imports. India had around 41% of its tech revenue from outside the country. Therefore, countries like the US are facing financial crises.
Will IT Rise In The Upcoming Quarters?
The IT sector has the potential to rise again. AI and machine learning have contributed a lot to the IT sector. Therefore, the scope of IT stock rise is estimated. Further predictions are being made that the Indian stock market will perform better in 2024. It can also reach a high of up to 10%. Recently, Nifty 50 fell below 21,000. It is currently quite close to 21,600. It includes several top tech companies in India as well. The stock market change depends on a lot of factors. One single factor can predict the results. The Indian market has Infosys as one of the top IT stocks. It has grown by 4.76% in the last month. Other companies like Reliance and Wipro Ltd. are also doing well. Stay tuned for more information.