Nifty IT Slides 3.54% Today; Weekly Decline Crosses 8% As IT Heavyweights Crack

The Nifty IT has witnessed a steep correction, emerging as one of the weakest-performing sectoral indices in recent sessions.

In the latest trading session, the index fell around 3.54% intraday, while on a weekly basis, it has declined over 8%. Thus, translating into a drop of nearly 2,900–3,000 points from recent highs. The index had been trading near 36,100 levels earlier this month but slipped toward the 31,400–32,000 range, showing intense selling pressure across constituents.

On a one-year basis, the Nifty IT index is down approximately 22%, sharply underperforming the broader Nifty 50, which has gained close to 13% during the same period.

Heavyweights Lead the Decline

Large-cap IT stocks have been at the forefront of the correction:

• Tata Consultancy Services fell roughly 3% in a single session.
• Infosys dropped about 3–3.5%.
• HCL Technologies slipped nearly 4%, touching lower price bands.
• Wipro and Tech Mahindra also recorded losses in the 2–4% range.

The sharp moves across index heavyweights amplified the fall in the overall IT gauge due to their high weightage.

Over the past few weeks, the top five IT companies together have seen an estimated ₹4.5–4.8 lakh crore erosion in market capitalisation, thus underscoring the scale of the correction.

Picture credit: NSE

FII Outflows Add to Pressure

Foreign institutional investors (FIIs) have accelerated selling in the IT segment. Between February 1 and mid-February, overseas investors reportedly pulled out close to ₹11,000 crore from IT stocks alone.

This persistent selling has intensified volatility in the sector, especially given that IT stocks traditionally carry significant foreign ownership.

Three-Year Returns Turn Muted

The ongoing correction has also weighed on longer-term performance metrics.

Over the past three years, the Nifty IT index has delivered a cumulative return of roughly 3%, significantly trailing broader benchmarks.

Among individual stocks:

• TCS has delivered negative returns of around 10% over three years.
• Infosys has posted only modest gains.
• Wipro’s performance has remained largely flat during the period.

This muted trajectory contrasts with the strong rally seen in banking and capital goods stocks.

What’s Driving the Sell-Off?

1. AI-led disruption concerns- Rapid advances in automation and generative AI have triggered fears that traditional IT outsourcing revenue models may face pricing pressure.
2. Global macro uncertainty- Slower tech spending in key markets like the US has weighed on revenue visibility.
3. Valuation reset- After years of premium valuations, IT stocks are undergoing a re-rating.
4. Sector rotation- Investors have been shifting capital toward domestic-facing sectors such as banking and infrastructure.

“US tech stocks have been under pressure, and since Indian IT companies derive a significant portion of their revenue from the US market, any weakness there has a direct impact on sentiment here as well. Ongoing concerns around US tariffs have further added pressure on IT stocks,” says Vidhyadhar Kamble, Founder and CEO of Maha Trader Share Market Education. “Overall, the trend in the IT space remains weak for now, and caution is advised. From a technical perspective, the key support level is around 31,430. If this level breaks on a closing basis, the Nifty IT index could decline further toward the 30,000 zone. On the upside, if the index sustains above 31,430, strong resistance is seen near 33,200, based on price-action analysis. Traders and long-term investors may look at gradual accumulation around these levels, strictly with proper risk management,” adds Kamble. 

While the Nifty 50 has shown resilience with mid-teens gains over the past year, the IT index has sharply underperformed, making it one of the weakest large sectoral performers in 2026 so far. The divergence also highlights a broader trend of investors favouring cyclical and domestic growth stories over export-oriented technology names.

Disclaimer: Investors should evaluate their risk profile and take professional guidance where required. This analysis is for educational understanding only and reflects personal views.

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