Nifty IT index slides 1.5%: Why did IT stocks fall today?

Infosys shares fell despite analysts remaining positive after the company reported in-line first-quarter earnings

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India’s information technology stocks declined on Thursday as mixed analyst reactions to first-quarter earnings and disappointing results from several firms pulled the Nifty IT index down by over 1.5 per cent.

 

Shares of Persistent Systems and Coforge tumbled over 8 per cent each during the day. Heavyweight stocks like Infosys and Tech Mahindra fell over 1.5 per cent on Thursday, compared to the 1.67 per cent decline in the benchmark Nifty IT index as of 11:15 AM. 

 

However, shares of Oracle Financial Services Software, up 0.95 per cent, were the only counter to buck the negative trend and trade higher during the session.

 

The gauge of IT stocks has been falling under persistent selling pressure and is down nearly 7 per cent so far this month. Meanwhile, the Nifty50 index is down merely 1.5 per cent in July.   Track LIVE Stock Market Updates Here

Why did IT stocks fall today?

Shares of Persistent Systems and Coforge led the declines amid disappointing June quarter earnings, which the companies reported on Wednesday post-market hours. 

 

Persistent reported a modest sequential growth for the quarter ended June 30, 2025. Net profit rose 7.4 per cent Q-o-Q to ₹425 crore from ₹395.7 crore, while rupee revenue grew 2.8 per cent to ₹3,333.5 crore from ₹3,242.1 crore. Nomura termed the results a ‘mixed bag,’ highlighting slightly lower-than-expected revenue growth in constant currency terms and flagged risks related to slower client decision-making, especially in healthcare. 

 

Meanwhile, Coforge reported a strong rise of 138 per cent in its profit after tax (PAT) figure to ₹317.4 crore during Q1. Analysts said that the stock's strong rally during the April–June quarter prompted investors to book profits following the release of its Q1FY26 earnings.

 

Likewise, shares of Infosys declined on Thursday, despite analysts remaining positive after the company reported in-line first-quarter earnings. The drop was likely driven by trimmed revenue guidance, even as deal wins rose. 

 

The net profit of Bengaluru-based company came in at ₹6,921 crore, marking a sequential decline of 1.6 per cent. The top line grew 3.3 per cent on quarter-on-quarter (Q-o-Q) to ₹42,279 crore.

 

Analysts at Antique Stock Broking noted that although this was a good quarter, the organic guidance was largely unchanged. The narrow guidance reflects a mid-point increase in guidance from 1.5 per cent to 1.7 per cent. The revision accounts for a continued uncertain environment driven by tariff-related concerns, geopolitical risks, and lower third-party revenue, analysts said.