why Tech Mahindra is down today
Tech Mahindra share price is down today as the stock closed around 1562 rupees on December 9 2025, marking a decline of nearly 2 percent from its previous close.
The IT major witnessed selling pressure along with other technology stocks as investors turned cautious ahead of the US Federal Reserve meeting.
The Nifty IT index became the worst performing sector today with Tech Mahindra among the top losers on the Sensex. This decline adds to the company’s year to date losses which now stand at approximately 13 percent.
Market analysts point to multiple factors including foreign institutional investor selling and concerns about US India trade relations that are weighing on the stock.
The broader market sentiment turned negative with the Nifty 50 falling below 25850 levels. Tech Mahindra’s trading volume increased by about 20 percent compared to recent sessions indicating active profit booking by traders.
The stock has been struggling to find support after falling from its 52 week high of 1807 rupees reached in December 2024.
Despite recent positive developments like the AT&T partnership for 5G network testing, the stock could not escape today’s sector wide selloff. Investors are now closely watching the Federal Reserve’s interest rate decision and upcoming quarterly earnings for direction.
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Tech Mahindra witnessed significant selling pressure on December 9 2025 as the stock price dropped to 1562 rupees. The decline came despite no negative company specific news or earnings announcements. Instead the fall was driven by sector wide concerns and macroeconomic factors affecting all Indian IT stocks.
The primary reason for today’s decline was investor caution ahead of the US Federal Reserve’s policy meeting scheduled for December 9 and 10. While a 25 basis point rate cut is widely expected by market participants, recent comments from Federal Reserve officials have created uncertainty.
Fed officials have indicated that further interest rate cuts are not guaranteed due to persistent inflation and stable labor market conditions in the United States.
IT stocks are particularly sensitive to US interest rate decisions because these companies derive a large portion of their revenue from American clients. When interest rates are high or uncertain US companies tend to reduce their technology spending which directly impacts Indian IT service providers.
Tech Mahindra earns approximately 60 percent of its total revenue from US based clients making it vulnerable to changes in American economic conditions.
Other major IT stocks also fell today. TCS Infosys Wipro HCL Tech LTIMindtree and Persistent Systems all declined between 1 to 4 percent. This sector wide weakness confirms that the selling was not specific to Tech Mahindra but part of a broader trend affecting the entire information technology industry.
Trade tensions between the United States and India are creating additional headwinds for technology stocks. There are growing fears of delayed trade deals and potential US tariffs that could affect Indian exports. The IT sector which is heavily export oriented would face significant challenges if tariffs are imposed on technology services.
Post US elections there has been uncertainty about trade policies which has made foreign investors nervous. They are reducing their positions in Indian stocks particularly in sectors that depend on international business. The concerns about tariffs could raise operational costs for IT companies and reduce profit margins.
The Indian rupee has also weakened significantly against the US dollar reaching multi month lows. While a weaker rupee can sometimes benefit IT companies by increasing their rupee denominated revenues when converted from dollar earnings it also increases import costs and creates margin pressure. The overall negative sentiment from currency weakness is currently outweighing any potential benefits.
Foreign institutional investors have been net sellers of Indian stocks in recent sessions adding to market pressure. They are moving funds out of emerging markets like India due to concerns about global economic growth and uncertainty about monetary policy in developed nations.
This selling by FIIs has been particularly heavy in technology stocks which had seen strong gains earlier in the year. The forced selling from retail traders who had taken leveraged positions has amplified the downward pressure. Many retail investors had bought stocks using margin trading facilities since October and are now being forced to exit these positions due to margin calls.
Domestic institutional investors have provided some support to the market but their buying has not been strong enough to offset the foreign selling. This imbalance between supply and demand is pushing stock prices lower across the board.
From a technical perspective Tech Mahindra has been in a downtrend since reaching its 52 week high of 1807 rupees in December 2024. The stock is currently trading below its 200 day moving average which is a bearish signal for traders.
Market analysts have identified Tech Mahindra as a sell on rise candidate with potential downside targets around 1350 rupees in the short term. The stock is the second furthest from its all time high among Nifty 50 stocks having declined about 13.9 percent from its peak of 1838 rupees reached in December 2021.
| Metric | Current Value | Change |
|---|---|---|
| Closing Price | 1562 rupees | Down 1.9% |
| Market Cap | 153885 crore | Down 3100 crore |
| 52 Week High | 1807 rupees | Down 13.5% |
| 52 Week Low | 1209 rupees | Up 29.2% |
| P/E Ratio | 35.1 | Stable |
| Trading Volume | 2.2 million shares | Up 20% |
Several macroeconomic indicators are contributing to the negative sentiment in the market. India’s nominal GDP growth has slowed to single digits which is concerning for investors. The wholesale price index has turned negative indicating deflationary pressures in the economy.
These economic signals are making investors cautious about the earnings outlook for companies in the coming quarters. While Tech Mahindra reported revenue growth of 1.4 percent year on year in its second quarter results the broader economic slowdown could impact future performance.
The company’s fundamentals remain relatively strong with a dividend yield of 2.59 percent and consistent profitability. However in the current market environment investors are more focused on short term risks and global factors rather than company specific strengths.
The immediate focus for investors will be on the US Federal Reserve’s policy statement and press conference. If the Fed takes a dovish stance and confirms continued rate cuts IT stocks could see a sharp recovery. However if the central bank signals a pause in rate cuts or raises concerns about inflation the selling pressure could intensify.
Tech Mahindra’s third quarter earnings will also be crucial for the stock’s direction. Investors will watch for commentary on deal wins client spending trends and margin performance. Any positive surprises on these fronts could help the stock recover from current levels.
Short term traders might consider staying on the sidelines until there is more clarity on the Federal Reserve decision and trade policy developments. Long term investors who believe in the company’s fundamentals could use this dip as an accumulation opportunity especially if the stock falls below 1550 rupees with proper stop losses in place.
The broader IT sector outlook depends on resolution of trade tensions and recovery in US client spending. Until these uncertainties are resolved volatility in IT stocks including Tech Mahindra is likely to continue. Investors should monitor global developments closely and adjust their positions based on risk appetite and investment horizon.
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