Infosys shares dropped more than 3% on September 7. The Nifty IT index fell over 2% as Infosys led losses among major Indian IT firms.
Renewed concerns over potential U.S. Federal Reserve interest rate hikes triggered the sector-wide sell-off. A stronger-than-expected U.S. jobs report fueled expectations that the Federal Reserve will maintain higher interest rates to manage inflation.
The United States serves as the largest market for Indian IT companies. These macro-economic concerns caused the Sensex to open lower, driven primarily by losses in the IT sector.