Green Shoots Finally? IT Stocks Infosys, TCS, Wipro And Others Recover From Day's Lows After Massive Selloff

Indian IT stocks staged a partial recovery in Friday’s mid-session trade after a sharp early selloff dragged the sector to its lowest levels in nearly ten months, amid sustained concerns over US interest rates, slowing discretionary spending, and structural disruption from artificial intelligence.

As of around 1:30 pm IST, the Nifty IT index was trading significantly lower for the day but had recovered over 4 percentage points from its intraday low, after plunging more than 5% in early trade. The index slipped to around 31,420–31,450 levels, its weakest since April 2025, before value buying emerged in heavyweight stocks.

IT Stocks Lead Early Market Drag

The sharp fall in IT stocks weighed heavily on frontline indices. The Nifty 50 traded lower near the 25,550–25,600 zone, while the Sensex hovered around 82,850–82,950, down over 300 points at its weakest levels during the session.

IT stocks were among the top drags, reflecting risk aversion toward export-oriented sectors amid persistent global uncertainty. The sector has now corrected over 15–18% from its recent peak, according to market data, underperforming the broader market over the past several months.

Heavyweights Rebound From Day's Low

Large-cap IT stocks bore the brunt of selling in the opening trade, with several stocks slipping to fresh 52-week lows before stabilising.

• Infosys fell sharply in early trade but recovered around 3–4% from its intraday low, though it continued to trade lower on the day.
• TCS also bounced back from session lows, retracing about 3%, supported by selective buying at lower levels.
• Wipro and HCLTech recovered between 3–5% from their intraday troughs, while Tech Mahindra also saw a modest pullback from early losses.

Despite the rebound, most frontline IT stocks remained down between 1.5–3.5% for the day. 

Fed Outlook, AI Disruption Weigh On Sentiment

Market participants cited multiple headwinds for the sector, including expectations of higher-for-longer US interest rates, pressure on client tech budgets, and increasing automation of enterprise workflows through AI, which could structurally alter traditional IT services demand. “The recovery in frontline IT names like Infosys, TCS, and Wipro from intraday lows appears more technical than structural at this stage,” said Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager at 129 Wealth Fund. He added, “After a sharp selloff, short covering and valuation comfort typically trigger a bounce. However, the underlying concerns that led to the correction, slower discretionary spending, margin pressures, and the evolving impact of agentic AI on traditional service models have not disappeared overnight. Investors should differentiate between tactical rebounds and durable bottom formations. Large-cap IT stocks are now trading closer to long-term valuation averages, which can limit immediate downside, but earnings visibility remains the key variable. In the near term, markets may reward balance-sheet strength, large deal pipelines, and cost discipline. That said, we believe the real alpha opportunity lies beyond generic IT services."

Commenting on the recovery, Dipal Dutta, CEO at RedoQ, said: “Indian IT stocks staged a resilient mid-day recovery on February 13, 2026, bouncing back from a massive early-morning sell-off that saw the Nifty IT index plunge over 5% to a 10-month low. IT market leaders hit fresh 52-week lows in the opening session due to intensifying fears of AI disruption and hawkish US Federal Reserve signals, but ‘green shoots’ emerged as value buyers stepped in at these extreme technical supports. By early afternoon, the Nifty IT index recovered nearly 440 points from its trough, with stocks like Infosys and TCS retracing 3% to 5% of their intraday losses; while the sector remains down for the day, the recovery suggests a temporary stabilization as investors weigh steep valuations against the long-term structural risks of automated enterprise workflows.”

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