Nifty IT Slides Over 2% As Infosys, TCS, LTIMindtree Lead Sector-Wide Decline

The Nifty IT index fell more than 2% in Tuesday’s trade, with broad-based selling across information technology stocks amid concerns over global demand, weak technology spending and uncertainty surrounding the pace of artificial intelligence-led business transformation.

LTIMindtree emerged as the biggest loser on the index, declining 2.54%. Infosys fell 2.33%, while Tata Consultancy Services (TCS) lost 2.19%. Wipro dropped 2.07% and HCLTech slipped 1.49%. Other IT companies, including Persistent Systems and Coforge, also traded lower, reflecting weak sentiment across the sector.

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The decline came as investors continued to reassess growth prospects for export-oriented IT companies, whose earnings remain closely linked to spending trends in the U.S. and other developed markets.

Global Concerns Weigh On IT Stocks

It was seen as a result of both macroeconomic as well as industry specific reasons as opposed to any particular occurrence.

Indian IT firms have a high percentage of their earnings from international clients especially in the U.S. market. There is still a lot of apprehension in terms of corporate spending on technology as well as the fact that technology shares globally have been underperforming.

This has also continued to be under pressure following the latest business report by Accenture. The commentary raised fresh concerns over near-term revenue growth for Indian software exporters.

Investors are also evaluating how quickly large IT services companies can adapt to artificial intelligence. While AI is expected to create long-term opportunities, the market is awaiting evidence that companies can successfully scale AI-led services while protecting margins.

Technical Indicators Remain Weak

Speaking to 5paisa, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty IT index continues to trade below its key moving averages on both daily and weekly charts, indicating that the broader trend remains weak.

He pointed out that the index still sits within the lagging quadrant of the Relative Rotation Graph (RRG) and that MACD is still beneath both the zero and signal lines.

Shah added that derivatives data also reflected bearish positioning. Eight of the 12 Nifty IT stocks have witnessed fresh short build-up, while LTIMindtree and Wipro have seen long unwinding. Among the index constituents, Coforge is the only stock showing relative strength.

According to Shah, the 26,100-26,200 zone remains a critical long-term support area. A sustained move below this range could trigger another round of selling, while a meaningful recovery would require the index to reclaim the 27,950-28,000 zone.

Key Support Levels In Focus

Anshul Jain, Head of Research at Lakshmishree, told 5paisa that the Nifty IT index is approaching an important long-term support level near 26,189, its lowest zone in nearly four years.

He said a short-term recovery cannot be ruled out from current levels, but the broader structure continues to indicate weakness, with the index forming lower highs and underperforming the broader market.

According to Jain, investors may wait for signs of a durable base and confirmation of a trend reversal before turning positive on the IT sector. A decisive break below the 26,189 level, he added, could signal a deeper structural decline.