Nifty IT index slips 2%; TCS, Infosys, HCL Tech, LTM, Wipro down up to 3%

In the past three weeks, the Nifty IT index tanked 13 per cent, as against 2 per cent rise in the Nifty 50.

Information technology (IT) shares today

 

Shares of information technology (IT) companies were under pressure, with the Nifty IT index falling over 2 per cent amid a decline in frontline stocks on the National Stock Exchange (NSE) in Tuesday’s intra-day trade due to growth concerns.

 

Tata Consultancy Services (TCS), Infosys and Wipro were down 3 per cent each, while LTM, Tech Mahindra and HCL Technologies were trading lower in the range of 1 per cent to 2 per cent.

 

At 01:03 PM, the Nifty IT index was down 2.2 per cent, as compared to 0.71 per cent decline in the Nifty 50. The index hit an intra-day low of 26,999.75 on the NSE. It touched a 52-week low of 26,634.50 on Friday, June 19, 2026.

 

 

In the past three weeks, the IT index tanked 13 per cent, as against 2 per cent rise in the benchmark index. Further, in the past six months, Nifty IT index plunged 31 per cent, as compared to 8.4 per cent fall in the Nifty 50.  CATCH STOCK MARKET UPDATES LIVE

Reasons behind IT index underperforming the market?

 

On Monday, Nasdaq Composite fell 351.33 points or 1.32 per cent to 26,166.60 amid a sell-off in technology stocks. 

 

SpaceX, which makes up about 5 per cent of the Nasdaq, fell 16 per cent, marking its third straight decline. An even bigger Nasdaq component, Alphabet, suffered its worst-day in more than a year, down 5 per cent amid concerns about its artificial-intelligence business, the Wall Street Journal reported.

 

Meanwhile, South Korea's Kospi dropped 9.99 per cent to the day's low 8,203.84 as trading resumed after a 20-minute circuit breaker suspension by the Korean Exchange. The Kospi fell sharply from the record high as investors sold off heavyweight chip stocks, fearing the rally has become overstretched, Bloomberg reported. READ MORE

 

Meanwhile, in the past four trading days, Nifty IT index slipped 6 per cent, as against a 0.5 per cent dip in the Nifty 50, as Accenture narrowed its annual revenue growth forecast and issued weaker-than-expected fourth-quarter guidance, despite steady quarterly earnings. 

 

Accenture guided for 1-5 per cent growth in constant currency (CC) terms for 4QFY26E, and expects 0.5 per cent headwind from currency movements in 4QFY26E. The company lowered its FY26E guidance band for revenue growth from 3-5 per cent to 3-4 per cent year-on-year in CC terms largely due to the West Asia conflict and two large deals slipping into FY27E (due to client-specific issues).

 

For FY26E, Accenture expects around +2 per cent tailwind from currency movements and 1 per cent headwind from its US business. FY26E adjusted EBIT margin guidance came in at 15.8 per cent versus previous the guidance band of 15.7-15.9 per cent.  READ | South Korea's KOSPI crashes 10% after record rally; key reasons 

The Q3 commentary suggests the demand environment remains mixed, with strong AI-led transformation demand offset by weak discretionary spending and elongated decision cycles. For FY26, the management expects consulting growth in low single digits and managed services growth in mid-single digits.

 

For Indian IT services, the read-through remains largely unchanged - AI-led demand and large deal activity are supporting growth, but the broader recovery is still gradual rather than broad-based, analysts said. Those at Nomura believe that the West Asia conflict is expected to have some effect on the revenues and deal bookings in Q1-FY27 for the Indian IT majors.

 

"For IT services firms, the key concern is that productivity improvements in software engineering are occurring much faster than in non-software domains. This increases the risk of lower effort requirements, reduced billing volumes, and pricing pressure for traditional application development and maintenance contracts," said analysts at Kotak Securities.

 

Adding that "As a result, companies with larger exposure to application services may face greater disruption than peers focused on infrastructure, cybersecurity, engineering services, or BPO. The pace at which enterprises integrate AI models into software delivery workflows will be the key factor determining the magnitude of disruption for the IT services industry over the next three years."  ==============================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.