Infosys, TCS, TechM Shares Slide Up To 5% After U.S. Jobs Data, AI Concerns Resurface

On February 12, 2026, Indian information technology stocks fell sharply in early trading, following losses in U.S. technology stocks. This was because U.S. jobs data lowered expectations for near-term interest rate cuts and brought back worries about disruptions caused by artificial intelligence. The Nifty IT index fell more than 4% to 33,588.80 at 9:40 AM, making it the worst-performing sectoral index, according to NSE data.

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

Open Account Now

Shares of Coforge and Infosys dropped around 5% each during the session. Infosys touched its lowest level since April 17, 2025. TCS, Tech Mahindra, Mphasis, LTIMindtree and Persistent Systems declined over 4% each, while HCL Technologies and Wipro fell more than 3%, as per exchange data.

Nifty IT Extends Multi-Year Decline

The Nifty IT index has now declined about 11% so far in 2026, after falling nearly 13% in 2025, according to NSE statistics. The sustained weakness has coincided with rising concerns that artificial intelligence adoption could pressure the traditional revenue and staffing models of software services companies.

U.S. Jobs Data Weighs On Sentiment

U.S. job growth increased more than expected in January 2026, while the unemployment rate fell to 4.3%, according to official U.S. labor data. The data showed that the job market was still strong, which might let the U.S. Federal Reserve keep interest rates the same for a longer time while it looks at how inflation is changing.

However, employment gains were largely concentrated in the healthcare and social services sectors, according to a Reuters report citing labor market data. Reuters also reported that job openings and related indicators continued to signal a relatively subdued broader labor market despite the headline strength.

Wall Street Tech Stocks Decline

Following the release of the U.S. jobs data, major U.S. technology stocks ended lower. Microsoft shares fell 2.2%, making it the biggest decliner on the S&P 500, while Alphabet dropped 2.4%, according to Reuters. The S&P 500 software index declined 2.6%, while broader U.S. equity benchmarks ended largely flat.

AI Developments Add To Pressure

IT stocks had already been under pressure earlier in February after artificial intelligence firm Anthropic launched new plug-ins for its Claude AI Cowork agent, enabling automation across legal, sales, marketing and data analysis functions, according to company announcements cited by Reuters. The development has intensified concerns that AI tools could increase competition and reduce demand for traditional IT and professional services.
Indian IT stocks kept going down on February 12 because of a combination of weak global technology, changing U.S. interest rate expectations, and ongoing uncertainty about how fast and how big AI-driven disruption will be in the industry.