Major Information technology (IT) stocks came under sharp selling pressure on Tuesday, with frontline companies such as Infosys, TCS, Coforge and Persistent Systems falling up to 3% amid growing concerns over global economic growth, rising geopolitical tensions and broader market weakness.
The Nifty IT index tumbled 2.86% to 28,490.60 in early trade, emerging as one of the worst-performing sectoral indices on Dalal Street.
Among the top losers, Infosys dropped 3.24% to Rs 1,138.90, while TCS declined 2.76% to Rs 2,326.80. Coforge slipped 3.23%, Persistent Systems fell 3.12% and Mphasis declined 3.06%.
Other major IT stocks also traded lower. Tech Mahindra fell 2.81%, LTIMindtree declined 2.80%, HCLTech slipped 1.98% and Wipro dropped 1.67%.
Analysts suggested that investor sentiment towards the IT sector weakened amid fears that rising global uncertainty could hurt technology spending by clients in key overseas markets such as the US and Europe.
The selloff comes at a time when concerns over the fragile US-Iran ceasefire and surging crude oil prices have rattled global financial markets, triggering a broader risk-off mood among investors.
Indian IT companies derive a significant share of their revenues from global clients, especially in banking, financial services and technology sectors. Any signs of economic slowdown or spending cuts in developed markets typically weigh heavily on Indian IT stocks.
The broader weakness in domestic markets also added to pressure on technology shares. Benchmark indices opened sharply lower on Tuesday, while the Indian rupee plunged to a .
Although a weaker rupee generally supports export-oriented IT companies by increasing the value of their dollar earnings, analysts said markets are currently more focused on fears of slower global growth and delayed discretionary technology spending.
The latest decline adds to the sustained weakness seen in IT stocks over recent weeks. The Nifty IT index has now fallen more than 8% over the past 30 days, reflecting continued pressure on the sector amid volatile global conditions and concerns around corporate tech spending.
Several IT stocks are also trading near their 52-week lows. Infosys hit an intraday low of Rs 1,137.10 on Tuesday, while TCS touched Rs 2,325.30.
Market participants are now closely tracking crude oil price movements, developments in West Asia, US economic data and foreign institutional investor activity for further cues on the sector’s outlook.
Analysts expect volatility in IT stocks to remain elevated in the near term as investors assess the potential impact of global macroeconomic risks on technology demand.