Nifty IT index dropped 11% in September 2026, marking its steepest monthly fall in a year. The decline pushed several leading technology stocks including Infosys, Wipro, Tata Elxsi, KPIT Technologies and Birla Soft to fresh 52‑week lows. The broader Nifty 50 also fell but by a smaller 6% during the same period.
Market watchers attribute the sharp fall to global slowdown, high interest rates and disruption from generative artificial intelligence. Clients are delaying discretionary technology spending and focusing on cost optimisation, which has created near‑term revenue pressure for Indian IT firms.
Infosys, Wipro, Tata Elxsi, KPIT Technologies, Aurionpro Solutions and Happiest Minds all touched their lowest levels in a year. Other majors such as TCS, HCL Tech, Mphasis, Oracle Financial, Persistent Systems and Tech Mahindra slipped between 1% and 2% intraday. The IT index had earlier touched 25,699 points on July 1, its weakest level in twelve months.
Brokerages remain cautious in the short term. JM Financial expects muted growth in the second quarter of FY27, projecting between –0.5% and +2.6% quarter‑on‑quarter constant currency growth. Ventura Research believes artificial intelligence will drive long‑term growth but warns of near‑term headwinds. Analysts advise selective buying, preferring companies with stronger earnings visibility and resilient client relationships.
