Select IT stocks rose up to 3 percent, while heavyweights such as Infosys and TCS were also up by 1-2 percent each today. The trigger for the move was Accenture’s combination of top-end revenue growth, improved guidance visibility, and steady deal bookings.
All major IT stocks traded firmly higher on Wednesday, reversing losses from the previous session. The rally extended to midcap IT names as well.
The sharp decline in IT stocks today comes even as the broader market traded near the flatline, highlighting sector-specific pressure. All major IT stocks were under pressure with the IT stocks dominating the Nifty top losers list.
The NSE IT index is trading at a similar valuation to Nifty 50 index compared to a 38 percent premium in FY25
FIIs’ combined investment in IT stocks declined to about Rs 4.18 lakh crore at the end of February, the lowest level in four years. This represents a 21.8 percent drop from Rs 5.34 lakh crore at the end of January 2026, according to NSDL data.
Also, stronger rupee is seen as a headwind for export-focused IT services firms
As of now, consensus analyst estimates project a slightly better revenue growth for several large IT services companies in FY27
At Rs 26,510 crore, LIC sees maximum value erosion in Infosys and TCS
The sell-off in midcap IT stocks came even as frontline IT stocks were also under pressure, with the Nifty IT index down over 5 percent. However, losses in midcap names were deeper than those in large-cap peers today.
AI and new technologies have induced business and revenue uncertainty for IT companies
The Nifty IT index fell over 5% to an over 10-month low of 31422.60 points on February 13 morning
Investors may wait and watch for the dust to settle, says VK Vijayakumar, Chief Investment Strategist, Geojit Investments
IT shares have witnessed selling pressure in the last 2 years on lower discretionary spending in key global markets and AI disruption.
IT stocks: Jefferies sees 'more pain ahead' for IT sector as Anthropic’s Cowork plug-ins highlight how AI could erode application services revenue, which accounts for 40–70% of IT firms’ topline.
AI developer Anthropic launched new tools that heightened concerns over AI-driven disruption in the data and professional services industry; TCS loses Rs 70,000-crore market value
Indian IT stocks are toggling between a volatile mix of earnings momentum, global demand, and talent costs, an analyst said.
The outcome of Fed's meeting will likely impact investor sentiment around IT stocks as these Indian companies derive a significant portion of their revenue from the US market.
While IT companies derive most of their revenues from overseas, a large portion of their expenditure is incurred in local currency
Growth worries and AI-related uncertainty could cap multiples, even if cheaper valuations offer better entry points, says Jefferies
The gains in IT stocks today tracked a jump in US Fed rate-cut expectations, as the probability of a December cut has climbed to 70 percent from 44 percent a week earlier. Brokerage commentary added to the positive sentiment.
Mutual funds raised exposure to IT stocks in October after the sector hit a 67-month low, driven by better-than-expected Q2 results, the Motilal Oswal MF report shows.
Major IT companies clocked decent growth in financial services in September 2025 quarter.
IT stocks rise today: Infosys, TCS, Tech Mahindra, HCL Tech shares among the top gainers on Sensex, as India Inc gears up for the fiscal second quarters earnings.
IT stocks: TCS shares were the top loser on the Nifty IT index, hitting a fresh 52-week low of Rs Rs 2,956.90 apiece.
In a growth economy with nominal growth of 10 per cent or more, management of companies will weak growth will need to introspect on how to up their game