IT Stocks Extend Rout as TCS, Wipro, Infosys Decline Amid Global Tech Selloff, AI Concerns

Mumbai, June 8: Indian information technology stocks remained under intense selling pressure on Monday, extending losses for a fourth consecutive session as a global technology rout weighed heavily on investor sentiment. 

The Nifty IT index fell as much as 3% during the session, taking its cumulative decline to nearly 9% over the past four trading days. The selloff comes amid a sharp correction in global technology stocks, particularly in the United States, where investors have aggressively pared positions in high-growth sectors. 

Heavyweights such as Tata Consultancy Services, Infosys, Wipro, HCL Tech and Tech Mahindra were among the biggest drags on the index, with several stocks falling up to 6% during the recent decline. Tata Consultancy Services share price fell 1.6% at Rs 2,163.40 while Infosys share price declined 0.4% at Rs 1,192.60. Wipro share price slid 6% at Rs 186 while HCLTech share price dropped 0.14% at Rs 1,153.10. 

Wall Street rout sparks fresh concerns 

TCS slid as a tech selloff across Asia and Wall Street took a toll on the stock. Source: NSE 

The latest weakness in Indian IT stocks follows a sharp selloff on Wall Street, where technology shares led broader market declines. The Nasdaq Composite plunged more than 4% on Friday, marking its steepest single-day fall in over a year, while semiconductor and artificial intelligence-related stocks witnessed particularly heavy selling. 

Investors have become increasingly concerned that elevated valuations in technology stocks may be difficult to justify in a higher interest-rate environment. Stronger-than-expected U.S. economic data has also reduced expectations of near-term Federal Reserve rate cuts, prompting a reassessment of growth-oriented sectors. 

Given that Indian IT companies derive a significant portion of their revenue from North America, weakness in U.S. technology spending and corporate sentiment often has a direct bearing on valuations in the domestic sector. 

AI disruption worries weigh on outlook 

Wipro tanked the most as sentiment took a hit from global cues. Source: NSE