Nifty IT index has slipped 9% in just four trading sessions, marking one of its steepest declines in recent months. Heavy selling has dragged leading companies such as Wipro and Tata Consultancy Services down by up to 6%. The fall reflects investor worries about global technology trends and the growing impact of artificial intelligence on traditional IT services.
Market experts highlight weak global cues, rising US bond yields, and cautious client spending as major triggers. The Nasdaq technology index also dropped 5%, adding to the negative mood in Indian markets. Brokerages have downgraded Accenture, further hurting sentiment in the sector.
TCS has lost more than 33% this year, trading at its lowest level since 2020. Wipro has slipped close to its yearly low, while Infosys has noted that clients are focusing more on resilience and agility as they adapt to AI‑driven changes. Analysts believe Tier‑1 IT firms face muted growth, while Tier‑2 companies show stronger deal momentum and better execution.
Brokerages remain selectively positive on firms such as Persistent Systems and Coforge, which are seen as better placed to monetise artificial intelligence and maintain healthy margins.