IT stocks lead Sensex plunge of more than 600 points

Weakness in IT shares are leading the Sensex plunge of more than 600 points on Tuesday.

In the process, Sensex has breached the 73K mark. Sensex is trading at 72,782 points, down 617 points.

IT heavyweights are pulling down the benchmark with Infosys down more than 3 per cent, HCL Tech down more than 2 per cent, Tech Mahindra down 2 per cent.

The IT index is down more than 2 per cent.

Financials are also weak with Indusind Bank down 2 per cent, Bajaj Finserv down 2 per cent.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said economic and geopolitical issues will continue to weigh on markets in the near-term. The economic factor is the rising US bond yields which reduces the prospects of rate cuts by the Fed this year. High bond yields are negative for risky assets like equity and will accelerate FII selling in emerging markets like India.

Deepak Jasani, Head of Retail Research, HDFC Securities, said the short term trend of Nifty turned bearish as it has violated the crucial support placed at 22370. Next support for the Nifty is seen in the range of 22110-22150. On the higher side 22417 and 22600 could offer resistance in the short term, he said.