Feb 24, 2026
Image supply: ChatGPTOne theme dominating headlines currently is the sharp correction in IT stocks. The Nifty IT Index has fallen over 19.85% to this point in 2026, highlighting sustained stress on the sector.
The weak spot continued right this moment because the index slipped greater than 3% in early commerce, indicating that promoting was closely concentrated in know-how counters.
Shares of Infosys, Tata Consultancy Services, HCLTech, Tech Mahindra, Wipro, Coforge, Persistent Systems and Mphasis had been all deep within the crimson.
Amid this broader sector sell-off, one inventory that grabbed consideration right this moment was Eternal. Shares of the corporate fell over 4% in the course of the session.
Here’s why.
# High Valuation
Shares of Eternal fell almost 4% intraday on 24 February 2026, largely as a consequence of valuation considerations compounded by a pointy broader market sell-off.
The inventory is at the moment buying and selling at elevated valuations, with a consolidated P/E of round 1,078.7 and a P/B ratio of about 10.3x as of mid-day. Such wealthy valuations typically go away restricted room for disappointment, making shares extra susceptible in periods of market correction as buyers are likely to ebook income or scale back publicity to high-priced names.
Further, the market sentiment remained sharply damaging, with the BSE Sensex plunging over 750 factors and the Nifty 50 declining greater than 200 factors.
The benchmark indices had been dragged decrease by a sell-off in IT shares amid rising considerations over AI-led disruption, together with worries round rising crude oil costs and renewed international commerce tensions following contemporary tariff remarks by US President Donald Trump.
Being a constituent of key benchmark indices, Eternal confronted further stress from index-linked promoting, as passive funds and institutional investors trimmed exposure in keeping with the broader market decline.
Additionally, Eternal emerged among the many prime quantity losers on the Sensex, recording a complete traded amount of over 14 lakh shares and a turnover of round Rs 363 million, suggesting lively revenue reserving in the course of the session.
What Next?
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