Midcap IT Stocks Fall Up To 8% As Selling Pressure Intensifies

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Last Updated: 25th February 2026 - 02:13 pm

Summary:

Midcap information technology stocks declined up to 8% in intraday trade on Tuesday, with Persistent Systems and Coforge leading losses as selling pressure intensified across the sector, according to BSE data.

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Shares of Persistent Systems fell 7.7% to ₹4,595 around noon, while Coforge declined 6.6% to ₹1,203.60, as per data from the BSE. L&T Technology Services dropped 5.6% to ₹3,245.40 and Tata Elxsi slipped 5.2% to ₹4,466.
Other midcap IT counters also recorded sharp intraday losses. KPIT Technologies fell 4.9% to ₹773, Tata Technologies declined 4.7% to ₹572.45, and Hexaware Technologies was down 4.5% at ₹480.90. IT-enabled services firm Inventurus Knowledge Solutions dropped 5.3% to ₹1,460.60, according to BSE figures.

Sector Weakness Extends Beyond Large Caps

The decline in midcap stocks was sharper than movements seen in frontline IT companies during the session, based on exchange data. The broader weakness follows continued sector-wide selling over recent trading sessions.

Earlier this week, Jefferies downgraded several IT stocks, citing concerns around artificial intelligence-related changes in the industry’s revenue mix. CLSA also reduced target prices across multiple IT companies, while stating that fears of artificial intelligence-led disruption may be overstated, according to their published notes.

Recent statements by Anthropic indicated that its artificial intelligence tools can reduce the cost and complexity of legacy software modernisation. These comments were referenced in brokerage reports during the week.

The information technology sector has witnessed sustained volatility in recent sessions, with midcap stocks recording deeper percentage declines during Tuesday’s trade, as reflected in official exchange data.

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