Shares of KPIT Technologies fell 17 percent to a fresh 52-week low on Wednesday after the company issued a weaker-than-expected business update for the first quarter. The decline marks the steepest single-day drop since March 2020. The stock touched Rs 559.20, erasing more than Rs 3,080 crore in market value and reducing capitalization to Rs 15,330 crore. On Tuesday the firm said April-June revenue would decline about 1 percent from a year earlier because of sudden cuts by some European clients following their own profit warnings. Operating and net margins are also expected to fall more sharply than revenue due to limited scope for cost adjustments. Management noted that first-half results would be weak but maintained that long-term fundamentals remain intact, citing potential for greater outsourcing and automation. Technical analysts observed a clear breakdown in price structure, with the stock near September 2022 levels. Momentum indicators show persistent selling pressure, and the next support zone lies around Rs 550-555. Resistance is seen near Rs 625-630.
