Nifty IT Falls 3.5% To 52-Week Low Of 30,417.75; Sector Loses ₹5.05 Lakh Crore In February

The Nifty IT index declined 3.5% to 30,417.75 on February 24, hitting a fresh 52-week low and extending losses for the fifth consecutive session.

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The month-to-date decline in the index has widened to 20%. As of the previous session’s close, the IT pack has eroded ₹5.05 lakh crore in market capitalisation, according to Capitaline data.

All constituents of the Nifty IT index traded lower during the session. Persistent Systems, HCL Technologies, and Coforge declined more than 4% each. Infosys fell 3.7%, while Tata Consultancy Services dropped 3.5% and Wipro declined 2.9%, as per exchange data.

Trigger For The Decline

Selling pressure in IT stocks intensified after developments related to artificial intelligence tools. Anthropic recently announced updates to its Claude platform, including Claude Code, which the company said can assist in modernising COBOL-based systems. Reuters reported that the development led to weakness in U.S. technology stocks earlier this week.

Concerns have also emerged over capital expenditure by major U.S. technology companies on artificial intelligence infrastructure. Reuters reported that investors are evaluating the sustainability of large-scale spending on AI chips and related technologies.

According to Reuters, HSBC Global Investment Research said there could be a 14%–16% gross deflationary risk from artificial intelligence to overall IT sector revenues over the next few years.

Jefferies downgraded six IT companies, including TCS and Infosys, citing concerns about structural changes linked to AI tools, according to brokerage notes referenced by Reuters.

CLSA reduced price targets on eight IT stocks, including Coforge, HCL Technologies, Infosys, LTIMindtree, Persistent Systems, TCS, Tech Mahindra, and Wipro, according to a CNBC-TV18 report.

The continued decline on February 24 reflects sustained weakness across large-cap and mid-cap IT counters, as shown in NSE trading data and sectoral index performance.