Mumbai, May 22 -- The Nifty IT index dropped 1.16%, closing at 37,105.65. Among the notable laggards were Persistent Systems (down 1.93%), Oracle Financial Services Software (down 1.71%), Tech Mahindra (down 1.62%), Wipro (down 1.54%), HCL Technologies (down 1.39%), Tata Consultancy Services (down 1.2%), Infosys (down 0.98%), Coforge (down 0.6%), and Mphasis (down 0.57%).
Investors are wary that continued fiscal slippage could spell trouble for discretionary IT spending by US-based clients, a key revenue stream for Indian IT companies.
Driving the concern is a fresh budget proposal from US lawmakers, featuring new tax cuts. Former President Donald Trump is championing an extension of his 2017 tax cuts, which analysts warn could add trilli...