Nifty IT Drops Nearly 4% As HCLTech Results Weigh On Sector

The Nifty IT index declined around 4% in trade on April 22 after HCL Technologies reported Q4FY26 earnings and issued subdued growth guidance, according to stock market data.

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At around 11 AM, the index was trading at 30,515, down 3.8%, making it the worst-performing sectoral index. In comparison, the Nifty 50 index was down 0.5%.

Broad-Based Selling Across IT Stocks

Nine out of ten constituents of the Nifty IT index were trading lower. HCL Technologies Ltd was the biggest loser, falling around 10% to ₹1,304.

Tech Mahindra Ltd declined over 5% to ₹1,424. Infosys Ltd, Tata Consultancy Services Ltd, Coforge Ltd and Persistent Systems Ltd were down in the range of 2% to 5%.

Oracle Financial Services Software Ltd was the only stock in the index trading higher, gaining 1.6%. Persistent Systems shares declined around 5% to ₹5,099 following its Q4FY26 earnings announcement.

HCLTech Q4FY26 Results And Guidance

HCL Technologies reported a consolidated net profit of ₹4,488 crore for Q4FY26, up 4.2% from ₹4,307 crore in the same quarter last year, according to a company filing. Revenue from operations rose 12.34% to ₹33,981 crore compared to ₹30,246 crore in Q4FY25.

For fiscal year 2027, the company projected growth in its revenue by 1%-4% on a constant-currency basis. This was due to low discretionary expenditure and uncertainty and volatility in demand, which affected growth visibility.

In addition, the company pointed out that there would be a possible slowdown in some customer projects.

Actions by Brokers After Results

Brokers updated their projections on HCL Technologies after its results were announced. According to JM Financial, the company’s revenue and margin performance were below expectations. The brokerage reduced its target multiple to 18x from 19x and cut its target price to ₹1,350 from ₹1,440.

ICICI Securities retained a ‘Hold’ rating but lowered its target price to ₹1,370 from ₹1,390. The brokerage cited discretionary spending cuts, budget reductions in select clients, and weaker revenue guidance as key factors.

Persistent Systems also reported softer margins. According to ICICI Securities, its EBIT margin came in at 16.3%, down 40 basis points sequentially. Nomura noted that Persistent Systems’ Q4 revenue growth of 3.4% quarter-on-quarter in constant currency was below its expectations.

Market Reaction

The fall in the shares of IT companies was due to the announcement of earnings and guidance revisions, leading to sell-offs in the sector. Another factor being monitored by market watchers was the earnings announcements by Infosys scheduled for April 23.

The fluctuations in the Nifty IT Index are a response to events within individual companies and their earnings.