TCS, Infosys, L&T Triplets Tank on US Troubles

All of L&T's IT stocks, including Mindtree, tanked alongside behemoths like Tata Consultancy Services TCS and Infosys, wiping out 80,000 crore or $10 billion in investor wealth among a handful of IT stocks. The decline in stocks in the Nifty IT index mirrored the overall index, which was down 3% as of 10 a.m. today.

TCS contributed nearly half of the Nifty IT decline, but its contribution is proportional to its market capitalization when compared to the other stocks in the index. Inflation has been a thorn in the side of several Central Banks around the world. While raising interest rates for the second time recently, Indian central bank governor Shaktikanta Das referred to it as "globalised inflation."

Today's market crash also mirrors a global drop in major equity markets after US inflation hit a 41-year high. Wall Street had its worst week since January of this year, and investors in the United States may be in for more pain. This, in turn, is bad news for Indian IT firms, which rely heavily on revenue from the United States. Any indication of their spending habits leads to a decrease in stock value.