Indian shares opened lower on Monday, dragged by a sharp slide in information technology (IT) stocks after weak quarterly earnings from Infosys and Tata Consultancy Services.
The Nifty 50 fell 1.03 per cent to 17,639.75, as of 9:35 a.m. IST, while the S&P BSE Sensex lost 1.21 per cent to 59,700.44. Five of the 13 major sectoral indexes declined.
High weightage IT index tumbled 7 per cent, with India's No 2 IT services exporter Infosys slumping 11 per cent. The company forecast its revenue growth hitting a six-year low in fiscal 2024, with clients deferring spending due to recession worries in major markets, the United States and Europe.
India's top IT firm by market capitalisation, Tata Consultancy Services fell 3 per cent. The company also flagged uncertainty in the banking, financial, services and insurance (BFSI) segment in the near term in North American markets last week.
Meanwhile, Tech Mahindra lost nearly 7.5 per cent. Global equities remained subdued on rising odds of a 25-basis point Fed rate hike in May after data showed resilience in core US retail sales.