IT stocks drag markets: Infosys, LTIMindtree, HCL Tech fall up to 2%; Nifty IT among top losers

Mumbai, April 9: Shares of major IT companies came under selling pressure on Thursday, dragging the Nifty IT index lower and making it one of the worst-performing sectoral indices of the day, as weak global cues and cautious sentiment weighed on technology stocks.

Heavyweights such as Infosys, HCLTech and LTIMindtree declined 1–2 per cent in early trade, reflecting broad-based weakness across the sector.

Infosys led the losses among frontline IT stocks, falling around 2.1 per cent to ₹1,318, while HCLTech dropped 1.2 per cent to ₹1,439. LTIMindtree slipped 1.9 per cent to ₹4,436. Other peers also traded in the red, with Wipro down 0.4 per cent and Tech Mahindra declining about 1 per cent.

NIFTY Index Down

Reflecting the broader weakness, the Nifty IT index fell about 1.2 per cent, emerging as one of the top sectoral laggards on the National Stock Exchange. The decline in IT stocks also contributed to the weakness in benchmark indices, with the Sensex falling over 600 points and the Nifty slipping towards the 23,800 mark during the session.

The sell-off in IT stocks comes amid a combination of global and sector-specific concerns. Persistent uncertainty in global markets—particularly due to geopolitical tensions in West Asia—has dampened investor appetite for riskier assets such as technology stocks. IT companies, which derive a significant portion of their revenues from overseas markets, are especially sensitive to global economic trends and client spending patterns.

Subdued Demand Outlook

Analysts have also flagged concerns around subdued demand outlook and cautious client spending, particularly in key verticals such as retail and technology. Recent commentary suggests that discretionary spending by global clients remains under pressure, which could impact deal pipelines and near-term revenue growth for Indian IT firms.

Adding to the uncertainty are structural concerns around the impact of emerging technologies such as artificial intelligence. Market participants have been closely tracking developments in AI, with fears that increased automation could disrupt traditional IT services and outsourcing models—a key revenue driver for companies like Infosys and HCLTech.

The weakness in IT stocks also follows a period of volatility in the sector. While the segment had seen intermittent buying in previous sessions, supported in part by a weaker rupee—which typically benefits export-oriented IT firms—the broader trend has remained cautious amid global macro headwinds.

Market experts believe that the direction of IT stocks in the near term will largely depend on upcoming earnings and management commentary, particularly around deal wins, margin outlook, and demand recovery. With the earnings season approaching, investors are expected to remain selective and cautious.

Overall, the decline underscores the fragile sentiment in the IT sector, with global uncertainty, technological disruption concerns, and demand headwinds continuing to weigh on valuations and investor confidence.

Source: 

• https://www.nseindia.com/
• https://www.nseindia.com/get-quote/equity/HCLTECH/HCL-Technologies-Limited
• https://www.nseindia.com/get-quote/equity/LTM/LTIMindtree-Limited