Information technology (IT) as an equity fund category was the worst performer among all the sectoral funds in the financial year 2023. This came after COVID-driven digital transformation pushed Nifty IT Total Return Index (TRI) by over 200 percent from April 1, 2020, to March 31, 2022, while Nifty 50 TRI was up 116 percent. The narrative turned with the normalisation of monetary policy in the US, fears of global economic recession, earnings pressure from commodity and wage inflation and supply chain challenges. This created a lot of uncertainty in the market, which led to cautious spending by customers and corporates. Recent banking sector issues in US and Europe have made matters worse for IT companies.
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