IT Stocks Extend Fall to Sixth Session; Coforge Slides 6% After Chairman OP Bhatt Resigns

Indian IT stocks remained firmly under pressure on Wednesday, September 9, stretching their losing run to a sixth straight session. The Nifty IT index fell around 3% in morning trade, with Coforge taking the biggest hit after an abrupt change at the top of its board. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

By 10 am, Coforge shares had dropped as much as 6%. Infosys and Tech Mahindra were also among the leading Nifty losers, falling 3.6% and 3.3%, respectively. 

The latest fall adds to what has already been a difficult few sessions for technology stocks. Across the six-session losing streak, the Nifty IT index has shed more than 10%. 

Coforge Faces Sudden Leadership Change 

Coforge had an additional company-specific development weighing on the stock. Chairman Om Prakash Bhatt resigned on September 8 after concerns emerged from an internal audit of the company’s board evaluation process. 

Bhatt, a former chairman of State Bank of India, had taken over as chairman of the Coforge board in 2024. His term was originally scheduled to run until April 2027. 

The issue centred on the way the board evaluation and the subsequent audit report were handled and presented. According to the company, concerns included material information relating to Bhatt’s own performance not being fully disclosed to the board. 

Coforge did not provide further details on the nature of the information that had not been disclosed. 

The board had raised the matter with Bhatt and was considering his response when he submitted his resignation on September 8. 

Bhatt maintained in his resignation letter that he had acted in good faith. 

Vivek Sharma Named as Interim Chair After Bhatt 

Coforge has announced the appointment of Vivek Sharma, an independent director, to act as interim chairman following Bhatt’s resignation. The new role is to be filled until January 31, 2027. 

The leadership shake-up became yet another issue for Coforge on a day that tech stocks had faced widespread selling. 

With the Nifty IT index now down more than 10% over six consecutive sessions, Wednesday’s decline extended a difficult stretch for the sector. Coforge’s board-level development put the stock under additional pressure, while Infosys and Tech Mahindra also recorded sharp losses in morning trade.