Nifty IT Defies 900-Point Sensex Rally to Plunge 2.68% on TCS Dollar Revenue Decline
The Nifty IT index faced a punishing sell-off on Friday morning, plunging 2.68% to trade near the 30,780 level, marking its sharpest single-day retreat in months. The rout was triggered by a reaction to TCS Q4 earnings. While the broader Nifty 50 surged 0.96% to reclaim the 24,000 mark, the tech sector bled heavily, wiping out nearly 850 points from the sectoral gauge.
India's IT stocks suffered a brutal rout on Friday morning, with the sectoral index crashing 2.68% as investors aggressively liquidated tech positions following disappointing revenue data from industry leader Tata Consultancy Services (TCS).
As of 11:08 AM IST, the Nifty IT index had plummeted 2.68% to 30,788, emerging as the sole major sectoral laggard. In contrast, Nifty 50 rose 0.96% to 24,003.00, while the BSE Sensex surged 870 points to 77,121.01. The risk sentiment fueled by a fragile U.S.-Iran ceasefire propelled banking and metal stocks, but the tech sector was anchored by domestic earnings concerns.
TCS Drags Sector
The sell-off was spearheaded by TCS, which tumbled 3.28% to trade at 2,503 in heavy volume. While the company reported a 29% jump in quarterly net profit, the market was rattled by TCS recording its first-ever full-year revenue decline in dollar terms since its stock market listing. Despite securing record $12 billion in mega-deals, the immediate slowdown in discretionary spending across North American financial services proved too significant for investors to ignore.
Domino Effect
The negative sentiment surrounding the sector bellwether triggered selling across the IT pack:
- Infosys: Shares fell 3.28% to trade near 1,287, as traders recalibrated guidance expectations.
- HCL Tech: Witnessed a sharp retreat, trading 1.2% lower following profit booking after recent gains.
- Tech Mahindra: Slumped 2.08%, trading at 1,431, tracking the broader sectoral weakness.
Notably, Wipro was the lone outlier in the Nifty IT index, surging 2.87% to 208.70. The stock drew buying interest after the company announced its board will meet over April 15-16 to consider a potential ₹16,000 crore share buyback, providing a technical floor amid the sectoral carnage. However, Wipro dropped by 0.68%, by 11:08 AM, trading at 201.10.
The 2.68% crash reflects a fundamental valuation reset. With foreign portfolio investors (FPIs) pulling out nearly $4.9 billion from Indian equities in the first ten days of April, high-beta tech stocks have become prime targets for exit. While the Rupee trading at 92.4 provides a marginal tailwind for exporters, it has proven insufficient to counter the narrative of stalling global demand and the absence of fresh catalysts for the 2026 fiscal year.
Published By : Shourya Jha
Published On: 10 April 2026 at 11:03 IST