{"id":5209,"date":"2025-03-12T14:23:09","date_gmt":"2025-03-12T08:53:09","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5209"},"modified":"2025-03-12T14:23:09","modified_gmt":"2025-03-12T08:53:09","slug":"tech-stocks-sink-to-eight-month-low-as-morgan-stanley-flags-growth-risks","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/tech-stocks-sink-to-eight-month-low-as-morgan-stanley-flags-growth-risks\/","title":{"rendered":"Tech Stocks Sink to Eight-Month Low as Morgan Stanley Flags Growth Risks"},"content":{"rendered":"<h2 data-start=\"82\" data-end=\"158\">Nifty IT Declines 2% Amid Downgrades and Slowing US Client Spending<\/h2>\n<p data-start=\"160\" data-end=\"526\">Indian IT stocks faced a sharp selloff on March 13, 2025, as Morgan Stanley issued a cautious outlook, citing risks from a changing global macroeconomic landscape and technological shifts. This led to a steep decline in Nifty IT, which plunged nearly 2% to its lowest level since July 2024, extending its year-to-date losses to 16%.<\/p>\n<p data-start=\"528\" data-end=\"713\">The selloff was led by Infosys, Wipro, HCLTech, TCS, and Tech Mahindra, with concerns mounting over slowing discretionary spending by US clients amid global uncertainties.<\/p>\n<h3 data-start=\"715\" data-end=\"767\">Morgan Stanley&#8217;s Bearish View on IT Stocks<\/h3>\n<ul data-start=\"769\" data-end=\"1432\">\n<li data-start=\"769\" data-end=\"896\">Morgan Stanley downgraded Infosys to \u2018Equal Weight\u2019, slashing its target price to \u20b91,740 per share from \u20b92,150.<\/li>\n<li data-start=\"897\" data-end=\"1066\">The brokerage cut target prices across major IT firms, stating that valuation and revenue growth face strong downside risks due to shifting macro conditions.<\/li>\n<li data-start=\"1067\" data-end=\"1274\">TCS remains Morgan Stanley\u2019s top IT pick, but its target price was revised downward to \u20b93,950 per share from \u20b94,660, still implying an upside potential of 13% from the last closing price.<\/li>\n<li data-start=\"1275\" data-end=\"1432\">Coforge received an \u2018Overweight\u2019 rating, but its target price was cut to \u20b99,400 per share from \u20b911,500, signaling a 24% upside potential.<\/li>\n<\/ul>\n<h3 data-start=\"1434\" data-end=\"1493\">Infosys, Wipro, and HCL Tech Lead Market Declines<\/h3>\n<ul data-start=\"1495\" data-end=\"2289\">\n<li data-start=\"1495\" data-end=\"1639\">Infosys shares dropped nearly 4%, hitting an eight-month low, after both Morgan Stanley and Motilal Oswal issued downgrades.<\/li>\n<li data-start=\"1640\" data-end=\"1821\">Motilal Oswal rated Infosys \u2018Neutral\u2019, citing uncertainty in US client spending as companies adopt a \u2018wait-and-watch\u2019 stance amid global tariff-related concerns.<\/li>\n<li data-start=\"1822\" data-end=\"1943\">Wipro shares plunged 4%, while L&amp;T Technology Services and Persistent Systems declined by nearly 2% each.<\/li>\n<li data-start=\"1944\" data-end=\"2108\">HCL Tech\u2019s stock fell 3% to \u20b91,527 per share, following Morgan Stanley\u2019s equal-weight rating and a target price cut to \u20b91,600 per share from \u20b91,970.<\/li>\n<li data-start=\"2109\" data-end=\"2289\">Tech Mahindra also witnessed selling pressure, with Morgan Stanley maintaining an equal weight rating but reducing the target price to \u20b91,550 per share from \u20b91,750.<\/li>\n<\/ul>\n<h3 data-start=\"2291\" data-end=\"2364\">Nifty IT Hits Multi-Month Lows as Sector Faces Weakening Growth<\/h3>\n<p data-start=\"2366\" data-end=\"2580\">The latest report from ICICI Securities noted that Nifty IT has corrected by 13% in the past two months, with valuations now hovering at or below their five-year average price-to-earnings ratio (P\/E).<\/p>\n<p data-start=\"2582\" data-end=\"2858\">Morgan Stanley\u2019s sector-wide caution highlights concerns that Indian IT firms may struggle to maintain revenue growth momentum, especially with US-based clients cutting back on technology spending in response to macroeconomic and trade-related uncertainties.<\/p>\n<p data-start=\"2860\" data-end=\"3033\" data-is-last-node=\"\" data-is-only-node=\"\">With global demand trends shifting, the IT sector could remain under pressure in the coming months unless economic conditions stabilize and client spending picks up.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nifty IT Declines 2% Amid Downgrades and Slowing US Client Spending Indian IT stocks faced a sharp selloff on March 13, 2025, as Morgan Stanley issued a cautious outlook, citing risks from a changing global macroeconomic landscape and technological shifts. This led to a steep decline in Nifty IT, which plunged nearly 2% to its [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5209","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5209"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5209\/revisions"}],"predecessor-version":[{"id":5211,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5209\/revisions\/5211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5210"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5209"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}