Error 404: Infy, OFSS, Wipro & others suffer on D-St
Shares of Oracle Financial Services Software (OFSS) plummeted over 7% on Monday, while Wipro, Coforge, Infosys and other IT companies saw declines of up to 2% despite a generally upbeat market sentiment. OFSS shares reached a low of Rs 11,061, marking the sharpest single-day decline since late July and making it the top loser on the Nifty IT index, which itself has dropped more than half a percent.
The sharp drop in OFSS shares can be attributed to reports that around $18 billion in loans tied to an Oracle-leased data center in New Mexico are facing pressure, with loan values quoted at 89 to 91 cents on the dollar by banks such as Santander and Jefferies. This comes amid concerns over local opposition to Oracle's massive AI infrastructure project, Project Jupiter, in Dona Ana County, Arizona, due to fears of water supply and air quality impacts that could disrupt the AI infrastructure build-out.
OFSS is the Indian subsidiary of Oracle. The decline in IT stocks was also influenced by the extension of a $100,000 fee (around Rs 83 lakh) on employers for bringing in foreign workers on H-1B visas by another year by US President Donald Trump.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
