Indian IT stocks witnessed a sharp decline today, with shares of Infosys, Wipro, Coforge, and others dropping up to 6% to fresh record lows. The sell-off was triggered by investor concerns over artificial intelligence disruption, weak global cues, and caution ahead of the U.S. Federal Reserve’s policy meeting.
The Nifty IT index extended its correction, reflecting heightened volatility across the sector. Analysts suggest that while valuations have become more attractive, uncertainty around AI-led automation and global macroeconomic conditions continues to weigh heavily on investor sentiment.
Market Drivers
The decline was largely attributed to new AI announcements from Nvidia, which sparked fears of accelerated disruption in traditional IT services. Additionally, weak U.S. economic data and geopolitical tensions have amplified investor caution, leading to broad-based selling in IT counters.
Impact On Major Players
Infosys, Wipro, and Coforge were among the hardest hit, with intraday losses of up to 6%. Persistent Systems and HCL Technologies also faced steep declines, pushing the Nifty IT index closer to its 52-week low. Despite the downturn, experts believe long-term fundamentals remain intact, offering potential entry points for value investors.
Key Highlights
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Infosys, Wipro, Coforge drop up to 6%
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Nifty IT index extends correction, nearing 52-week lows
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Nvidia’s AI announcements trigger disruption fears
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Weak U.S. data and Fed policy uncertainty weigh on sentiment
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Analysts see attractive valuations despite near-term volatility
Sources: Economic Times, ET Now, Invest Desk