General
General
Nifty IT index movement today
Shares of information technology (IT) companies continued to remain under pressure with the Nifty IT index down 10 per cent in the past two trading days on growing concerns over artificial intelligence (AI)-led disruption and fading optimism around near-term global rate cuts following the strong US jobs data.
Nifty IT index was down 5.24 per cent to 31,422.60 on the National Stock Exchange (NSE) in Friday’s intra-day trade. The index had hit a 52-week low of 30,918.95 on April 7, 2025.
In the past two trading days, the index has plunged 10.5 per cent, while it tanked 12 per cent in the past three days. With a three-day decline, the Nifty IT index has slipped 19 per cent in the past eight trading sessions from a level of 38,611.75 on February 3, 2026.
Among individual stocks, Infosys dipped nearly 8 per cent to ₹1,281.50, also its 52-week low on the NSE in Friday’s intra-day trade. In the past two trading days, the stock has plunged 13 per cent.
Tata Consultancy Services (TCS), HCL Technologies, Coforge, Tech Mahindra and Wipro were down in the range of 5 per cent to 6 per cent. In the past two trading days, these stocks have slipped between 9 per cent and 11 per cent.
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Infosys, TCS, Cyient, Hexware Technologies, L&T Technology Services (LTTS), Mastek, Oracle Financial Services Software, Tata Technologies and Wipro today hit their respective 52-week lows.
At 09:48 AM; Nifty IT index was the top loser among sectoral indices, down 4.5 per cent, as compared to 1 per cent decline in the Nifty 50.
What’s making the Street nervous?
The US-listed Indian IT American Depositary Receipts (ADRs) continued to remain under pressure, with Infosys ADR declining 10 per cent and Wipro ADR falling 5 per cent in yesterday’s trading session, extending the sharp sell-off seen across global IT services names over the past week.
The sharp reaction in ADRs is acting as a sentiment proxy for domestic IT stocks, amplifying downside volatility in India.
The weakness follows the launch of Anthropic’s AI-enabled enterprise workplace solution, which has intensified concerns around structural disruption to traditional application development and maintenance (ADM) revenues for SaaS based companies. The Nasdaq IT services basket has corrected meaningfully, dragging Indian IT ADRs lower and triggering a risk-off sentiment that has spilled into domestic markets, ICICI Securities said in a note.
The brokerage firm believes the sell-off reflects rising anxiety around the medium-term revenue resilience of legacy IT services in a generative AI-led delivery model rather than any immediate earnings downgrade risk. As AI tools increasingly write code, fix bugs and deploy systems faster, ̉ the question of whether future enterprise tech spending will require fewer engineers remains, potentially altering cost structures and valuation frameworks.
While in the near-term volatility may persist amid fears of AI-led deflation in services demand, the correction also underscores a potential divergence ahead where firms that pivot successfully toward AI-led integration, digital transformation and platformization remain better positioned to rebound and shape the next growth cycle, whereas traditional ADM-heavy players may face sustained valuation compression, the brokerage firm said in a note.
The sell-off in AI stocks in the US markets was expected but the timing and extent of the sell-off was not known. But if the downtrend continues it might pull the US market down. For the Indian market, this correction in AI stocks is a positive, because last year’s global rally was primarily an AI trade in which India, an AI laggard, couldn’t participate. So the unwinding of the AI trade, if it persists, is a positive from the Indian perspective, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
However, what is rattling the Indian market now is the massive sell-off in IT stocks, which is the second largest profit pool of India Inc. The real impact of the ‘Anthropic shock’ on the IT sector is yet to be ascertained. Panic selling in IT stocks at this stage may not be a good idea. Investors may wait and watch for the dust to settle, said Dr. VK Vijaykumar. ===================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.