Infosys, Persistent And Tech Mahindra Lead IT Decline As Tech Stocks Melt For The Fourth Day

IT shares fell for a fourth session on Thursday, with frontline names such as Infosys, TCS, Persistent Technologies and Tech Mahindra coming under renewed selling pressure amid concerns over artificial intelligence-led disruption and weak visibility.

The sector remained under stress after fresh developments around OpenAI’s enterprise-focused deployment initiative intensified worries that global AI players could increasingly compete with traditional IT services firms. Investors interpreted the announcement as a potential long-term structural challenge, particularly for companies reliant on outsourcing, digital transformation and managed services contracts.

Infosys, Persistent Technologies and Tech Mahindra were among notable laggards, declining up to 3% at the time of writing.

The Nifty IT index declined 1.5% with several IT counters slumping to 52-week lows.

Other Factors

To be sure, there are other factorsbesides the revival of fears around AI driving the selloff. Slower global demand, cautious technology spending by clients in the US and Europe, and uncertainty around discretionary IT budgets have already weighed on revenue visibility. The latest AI-related headlines have amplified those concerns, prompting investors to reassess growth assumptions and valuations across the sector.

Tech Mahindra was down 1.7% at Rs 1,351, haunted by AI. Source: NSE

Infosys traded 2.3 percent lower at Rs 1,097.60 amid broader sectoral decline. Source: NSE

Adding to pressure, broader equity market volatility and risk-off sentiment have limited buying interest in export-oriented stocks. While IT companies typically benefit from a weaker rupee due to their dollar revenues, that support has not been enough to offset concerns about earnings growth and competitive dynamics.

AI deployment models are evolving rapidly, with enterprises exploring in-house solutions, automation tools and platform-based efficiencies.

AI Fears

Persistent was down 3.5% at Rs 4,672.80, troubled by concerns over an AI future. Source: NSE 

OpenAI’s new initiative is seen as a strategic move to accelerate enterprise adoption of advanced AI tools, potentially offering end-to-end deployment support, infrastructure integration, and customised solutions for corporate clients. Market participants say such a model could reduce reliance on third-party service providers in certain segments, particularly if businesses opt for more direct engagement with AI platforms. While the initiative is still evolving, investors are concerned that it signals a longer-term structural shift rather than a short-term product update. The fear is that as AI capabilities become more accessible and easier to implement, some traditional IT outsourcing and consulting roles could face pricing pressure or slower growth.

This shift could gradually alter traditional outsourcing structures, even if it does not immediately disrupt core revenue streams. As a result, investors are positioning cautiously, awaiting clearer signals.

Overall, the IT sector’s fourth straight day of losses highlights the market’s heightened sensitivity to AI-driven developments and global technology trends. Until there is greater clarity on demand stability and the competitive impact of new AI deployment models, volatility in the space is likely to persist, keeping the sector under watch even as broader markets attempt to stabilise.

Source: https://www.nseindia.com/get-quote/equity/TECHM/Tech-Mahindra-Limited, https://www.nseindia.com/get-quote/equity/INFY/Infosys-Limited, https://www.nseindia.com/get-quote/equity/PERSISTENT/Persistent-Systems-Limited