On September 4, the Nifty IT index dropped 1.7%, making it the biggest loser among the 13 sectoral indices. Leading IT stocks like Infosys, TCS, and Wipro slipped.
The decline follows concerns about a potential US economic slowdown, triggered by weak US manufacturing data. The Institute for Supply Management (ISM) reported a rise in PMI to 47.2 in August, up from 46.8 in July, but still below the 50 mark for the fifth consecutive month. This ongoing contraction in US factory activity has intensified worries about a slowdown. Additionally, upcoming US economic data, including jobless claims and the nonfarm payrolls report, could further influence market sentiment.