On October 31, the Nifty IT index saw a significant decline of almost 3% due to disappointing earnings reports from major US tech companies.

All ten constituents of the index, including Infosys, Tech Mahindra, and TCS, experienced a drop in their shares ranging from 2% to 5%.

This decline followed a poor performance in the US information technology sector, which decreased by 1.3% overnight.

Meta Platforms reported its third-quarter results, revealing weaker-than-expected user numbers despite a 19% year-over-year increase in sales and a 35% rise in net income to $15.7 billion.

However, this marked the lowest year-over-year net income growth for Meta since the second quarter of 2023.

The company also cautioned about a significant increase in anticipated infrastructure expenses for 2025.

Although its daily active users reached 3.29 billion, a 5% year-over-year increase, it fell slightly below analysts' expectations.

Microsoft also fell short of its revenue growth guidance, contributing to the overall negative sentiment in the tech sector.