After Infosys Fresher Salary Hike Move, Tech Stocks Plummet 4%; Key Details

India's major tech firms witnessed their share prices plummeting during Friday's session, December 26, after the south Asian nation's second largest tech company Infosys raised it entry-level salaries for freshers.

Among the ten constituents of the Nifty IT index, nine were trading in red, including Coforge declining 4%.

The stock prices of Tech Mahindra, Mphasis, LTIMindtree, Tata Consultancy Services, and HCL Tech also registered a decline between 1% and 1.5%.

Infosys shares recorded an intraday day low of 0.48% at Rs 1654.40 apiece.

Tracking losses in major tech stocks, the Nifty IT index slipped 1% to 38,600 and is poised to end the week 0.2% lower.

Also Read: AI Growth Faces Power, Resource and Safety Hurdles: JP Morgan

AI Push: Infosys Raises Fresher Salary Up To Rs 21L Mark

According to social media posts linked Infosys' latest hiring trend, N. R. Narayana Murthy founded Infosys raised salaries for 2025 graduates upto Rs 21 lakh, and the company will soon launch an off campus hiring drive for 2025 engineering and computer science graduates.

This comes after Infosys expects to ride the AI wave in India, especially after top tech giants from Microsoft to AWS announced plans to invest billions in building AI infrastructure in India.

Earlier, Microsoft said it would invest $17.5 billion in India's cloud and artificial intelligence infrastructure, making it the U.S. tech giant’s largest investment in Asia.

Meanwhile, Amazon is also committed to invest $35 billion across all its businesses in India through 20230, focused on strategic pillars such as AI-driven digitisation, and job creation.