IT Shares Fall After 3-Day Rally; Mphasis, HCLTech Lead Losers

• IT shares fell on Tuesday after a three-day rally, with the Nifty IT index declining over 1% and all constituents in the red.
• Mphasis, Oracle Financial Services Software, and HCL Technologies were among the top losers in the IT sector.
• The decline was primarily due to profit booking and investor caution ahead of the US jobs data release.
• US jobs data is closely watched for signals on interest rates, which can influence global capital flows and Indian IT companies' US-derived revenue.
• Global brokerage Citi maintains a cautious stance on IT services due to slow demand recovery, preferring Infosys and HCL Technologies among large-cap IT firms.

Why It Matters: IT stock decline reflects market caution and US economic data's influence.