New Delhi, Aug. 1 -- Domestic tech stocks came under significant selling pressure in July, failing to extend their bullish rally for the third consecutive month as tepid earnings, a resurgence of global trade tensions, caution about future growth, and signs of restructuring have made investors wary of IT stocks, with even mid-cap tech stocks also failing to escape from the sell-off.

Analysts have also revised their target price multiples lower for most stocks, including top industry giants, further pressuring the overall sector.

All 10 constituents of the Nifty IT index closed the month with negative returns, with four of them posting double-digit losses. HCL Technologies was the worst performer, losing 15% of its value, followed by Per...