Oracle Corp. shares fell 5 percent to close at $178.359 in US trading on April 23, wiping out over $25 billion in market value, as broader market concerns overshadowed strong performance from its India-listed subsidiary.
“Markets extended their recent trend, closing on a measured note amid mixed global cues and continued attention on crude oil prices,” said Gaurav Garg, a research analyst at Lemonn Markets Desk, reflecting the cautious sentiment that prevailed across global equities.
The selloff in the technology giant’s stock occurred during a risk-off session that saw investors reacting to a surge in crude oil prices, with Brent futures climbing above $102 a barrel. The spike has fueled worries about inflation and potential demand slowdowns, hitting technology and auto stocks particularly hard. In India, the Nifty IT index, a key benchmark for the technology sector, ended the day down 1 percent. The broader Sensex index tumbled 852 points, or 1.09 percent.
The decline in Oracle’s parent company stock stood in sharp contrast to the performance of its Indian subsidiary, Oracle Financial Services Software Ltd. (OFSS). Shares of OFSS surged 5 percent on the National Stock Exchange after the company reported a 30.7 percent year-over-year increase in net profit to ₹8.42 billion for the fourth quarter. The subsidiary’s revenue from operations also climbed 20.3 percent to ₹20.65 billion, beating analyst estimates and highlighting strong execution in its banking and financial services software segment. The divergence shows how macroeconomic fears, including HSBC’s recent downgrade of Indian equities to “underweight,” are weighing on global technology parent companies despite pockets of strength in their international operations.
This article is for informational purposes only and does not constitute investment advice.
