Hitesh Rathi, technical analyst at Angel One says that IT stocks continue to trade with a negative bias on the charts, and are prone to further fall if they dip below the crucial support zones.
Thus far in the calendar year 2026, the market price of TCS tanked 33 per cent, as compared to 11.5 per cent fall in the Nifty 50.
IT stocks witnessed heavy selling pressure on Wednesday tracking overnight losses in technology shares in the US market. Indian ADRs cracked up to 8%.
In the past three sessions, the Nifty IT index has climbed as much as 6 per cent, while the Nifty index has declined 2.50 per cent.
In 2026 so far, TCS, Infosys, HCL Tech, Tech Mahindra, and Wipro have declined in the range of 17 per cent to 33 per cent. In comparison, the Nifty 50 index has dived 10 per cent, data showed.
Anand James, chief market strategist at Geojit Investments highlights that Infosys and HCL Technologies look weak on charts as both were trading below March lows and the lower-end of Bollinger Bands.
The IT sector is expected to have a subdued quarter, with revenues likely to remain flat due to the ongoing geopolitical situation
In the past year, TCS's share price has plunged by 34 per cent, compared to a 4.6 per cent fall in the BSE Sensex.
Indian IT firms derive a major portion of revenue from the US market, making them sensitive to changes in interest rate expectations and inflation trends
Analysts see the sharp correction in stock prices and dislocation in parts of the market as an opportunity for investors to review their portfolios and make appropriate changes.
Concerns over rising inflation stemming from potential energy supply disruptions and rationing prompted investors to book profits, while FII outflows added to the market pressure, said Geojit.
Markets in free-fall: The Sensex has declined over 1 per cent in the last seven out of nine trading sessions; dragging 55 out of BSE 500 stocks to new 52-week lows on Thursday.
Muthuselvaraj M, Research Analyst at Mirae Asset ShareKhan highlights that TCS and HUL have broken down from a triangle pattern, while Ashok Leyland may have formed a double top on the weekly chart.
Thus far in the calendar year 2026, TCS's market price plunged 23 per cent, as against 7.4 per cent decline in Nifty 50, data shows. The NIfty IT index lost over 1 per cent in trade on Tuesday.
Ambuja Cements, DLF, Dixon, Gail, Indian Hotels, Shree Cement, REC, Tata Motors PV, Wipro, Suzlon, Coforge, and Info Edge, among the BSE 100 index, also hit their respective 52-week lows amid Iran war
Individually, HCLTech shares were up 3.57 per cent; Infosys, Tech Mahindra, TCS, and Wipro were trading over 2 per cent higher
The global research and broking house has cut their earnings estimates by 1-4 per cent across IT firms and expects 6 per cent earnings CAGR over FY26-28.
Today's rebound in TCS shares came as the Tata group announced a partnership with OpenAI amid the ongoing India AI Impact Summit in New Delhi
The Nasdaq IT services basket has corrected meaningfully, dragging Indian IT ADRs lower and triggering a risk-off sentiment that has spilled into domestic markets, said ICICI Securities.
Nifty IT slides 6% as AI disruption fears and fading US rate-cut hopes trigger sharp sell-off in frontline tech stocks