Coforge Share Price Crashes Over 6% Amid IT Selloff – What’s Behind the Drop?
Key Highlights:
Coforge Share Price Updates For 4 April 2025:– Coforge Ltd, one of India’s prominent mid-cap IT services companies, witnessed a sharp selloff in today’s trade, with the share price crashing by ₹454.35 or 6.35%, closing at ₹6,703.05 on April 4, 2025. The fall came as part of a broader correction in tech stocks, triggered by global headwinds and valuation concerns.
The stock opened at ₹7,050.35 and hit a low of ₹6,623 intraday, reflecting heightened investor anxiety. With a market cap of ₹44.83K crore and a P/E ratio of 56.31, the stock has often been viewed as richly valued in the mid-cap IT space.
What Triggered Today’s Crash?
Several factors contributed to the sudden decline in Coforge’s stock today:
1. Tech Sector Pressure Globally
U.S. tech indices like Nasdaq 100 saw heavy declines overnight due to increasing fears of a prolonged high interest rate regime. This negative sentiment spilled over to Indian IT stocks.
2. Valuation Reset in Midcap IT
Coforge has consistently traded at a premium due to its strong digital offerings and international contracts. However, analysts believe that a valuation reset is underway, especially in high P/E stocks with limited near-term growth catalysts.
3. Profit Booking Ahead of Q4 Results
With the Q4FY25 results season approaching, investors may be locking in profits after the recent rally. Coforge had gained nearly 15% over the past month before today’s correction.
Technical Analysis
- Opening Price: ₹7,050.35
- Day’s High: ₹7,093.85
- Day’s Low: ₹6,623
- Previous Close: ₹7,157.40
- Div. Yield: 1.13%
- 52-Week Range: ₹4,287.25 – ₹10,026.80
Technically, Coforge has breached its immediate support at ₹6,800, with the next strong base seen around ₹6,600. If the stock fails to hold this level, it could slide further to ₹6,400.
Market Sentiment on IT Stocks
Coforge’s decline wasn’t in isolation. Other IT majors like TCS (-2.37%), Wipro (-3.28%), and Polycab India (-3.30%) also faced significant selloffs, as seen in Nifty IT index losing over 3.5% intraday.
The sentiment in the IT sector remains cautious due to:
- Slowing global tech demand
- Strong U.S. dollar impacting margins
- Regulatory concerns in overseas markets
Expert Opinion
Kunal Shah, Senior Analyst at Dolat Capital, said:
“Coforge’s fall today is more of a sectoral correction than company-specific issue. The stock had run up quite a bit. Investors are cautious ahead of earnings and global rate decisions.”
Shraddha Shetty, Technical Strategist at Axis Securities, added:
“From a charting perspective, Coforge is still in a long-term uptrend, but immediate resistance now lies at ₹7,000 and support at ₹6,600. A breach below may accelerate the selling pressure.”
Should You Buy, Hold, or Sell Coforge?
Buy: If you believe in long-term digital transformation and trust Coforge’s execution in travel, insurance, and BFSI sectors, this dip may be a buying opportunity.
Hold: If already invested, consider holding and wait for Q4 earnings clarity. Avoid panic selling.
Sell: If you’re a short-term trader, the break below support levels suggests more downside. You may consider exiting or using strict stop losses.
Looking Ahead: What to Watch
- Q4 FY25 Earnings: Investors will watch revenue growth, deal wins, and margin commentary.
- Management Guidance: Any change in FY26 growth outlook will affect stock sentiment.
- Global Cues: Fed policy, U.S. job data, and tech valuations in Nasdaq will remain key triggers.
The Coforge share price fall today is a stark reminder of the volatility in tech stocks. While long-term fundamentals remain intact, investors should brace for near-term volatility, especially amid global macro uncertainties.
As the IT sector recalibrates, stocks like Coforge may offer value once the dust settles.
Stay tuned with Hindustan Herald for further updates on Coforge and other top-performing IT stocks.
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