New Delhi, Feb. 19 -- The Nifty IT Index has continued to outperform (up 6.4%) the broader Nifty 50 index (up 4%) over the past year. However, this outperformance has narrowed in recent months due to uncertainty over potential Fed rate cuts and concerns about a possible escalation of the tariff war.

Adding to the pressure, IT stocks faced selling today, February 19, after French IT consulting firm Capgemini reported a weaker-than-expected financial performance. The company posted a 1.9% year-over-year decline in revenue for full year 2024, citing a challenging market environment, with particularly strong headwinds in France and the manufacturing sector.

Capgemini's revenue fell to 22.10 billion euros in 2024 from 22.52 billion euros the...