IT drags Indian shares down; Hindustan Unilever, LG Electronics India slump on profit drop

LG Electronics India

12/02/2026 06:31

** India's stock benchmarks Nifty 50 .NSEI and Sensex .BSESN slip 0.5% each, dragged by IT stocks on fading hopes of near-term U.S. rate cuts and fears over AI-led disruption

** Twelve of 16 sectors fall; the IT index .NIFTYIT sinks 4.6%

** IT is down 11.6% so far in 2026 after sliding 12.6% in 2025

** Stronger U.S. jobs data in January dents expectations of near-term rate cuts, pressuring U.S.-exposed Indian IT

** Also dims outlook for discretionary U.S. tech spending over next few quarters

** Small- .NIFSMCP100 and mid-caps .NIFMDCP100 each ease 0.8% as risk-off tone broadens

** Elsewhere in Asia, technology stocks rise, led by semiconductor and hardware names such as Samsung 005930.KS and SK Hynix 000660.KS

** "The chip-heavy Asia trade is humming, but Indian IT is stuck in the crosswinds of rates and AI," says Kranthi Bathini, Wealthmills Securities

** Hindustan Unilever HLL.NS drops 3%, LG Electronics India LGEL.NS slides 3.6% on earnings slump

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))