The NIFTY IT slumped sharply on Tuesday, plunging 1,594.20 points, or 5.05%, to 29,956.30, slipping below the 30,000 mark and marking one of its steepest single-day declines in recent months.
The index opened at 31,031.85 against a previous close of 31,550.50 and fell to an intraday low of 29,912.05. The session high stood at 31,056.45. Market breadth remained firmly negative, with all 10 constituents declining and no advances recorded.
The selloff was broad-based across frontline IT names. Persistent Systems fell the most among index heavyweights, dropping 7.58% to ₹4,600 apiece. Tech Mahindra declined 7.04% to ₹1,339.40, while LTM (rebranded from LTIMindtree) shed 6.84% to ₹4,501.
HCL Technologies slipped 6.82% to ₹1,329, and Coforge dropped 6.66% to ₹1,203.10.
Among other major constituents, Infosys fell 4.29% to ₹1,270.60, TCS declined 3.97% to ₹2,570.10, Mphasis was down 3.87% to ₹2,220.40, and Wipro slipped 2.90% to ₹199.91.
The decline is in line with a sustained correction in the IT pack. The index has fallen 9.51% over the past week, 21.73% over one month, and 19.19% over three months. Year-to-date, it is down 21.59%, while one-year losses have widened to 24.13%.
The index remains closer to its 52-week low of 30,918.95 than its 52-week high of 40,301.40, underscoring the pressure on the sector amid persistent selling across large- and mid-cap IT stocks.
Sachin Gupta, VP – Research at Choice Broking, said in a note that the Nifty IT index slipped into a clear bearish phase in February 2026 after correcting nearly 21%.
“The decline gathered pace when the index broke down from a Head and Shoulders pattern on the weekly chart—a classic signal of a structural trend reversal,” he said, adding that the sell-off was largely triggered by global concerns around artificial intelligence.
From a technical standpoint, the picture has deteriorated further.
“The index has breached the important 61.8% Fibonacci retracement level (Golden Ratio) and witnessed a negative crossover of key moving averages, commonly known as a Death Cross. This suggests that the earlier “buy on dips” approach has now shifted to a “sell on rise” strategy,” he said.
With the index struggling to sustain even short-term pullbacks, the technical structure points to further downside toward the 29,300–28,700 support zone, he said, adding that a meaningful recovery is unlikely unless a strong global trigger—particularly stability in the Nasdaq—helps improve overall sentiment.
Indian IT stocks have been seeing heavy selling amid rising “SaaSpocalypse” concerns, triggered by concerns around highly efficient enterprise tools powered by AI.
Anthropic rolled out upgrades and enterprise capabilities for its Claude AI models that can automate routine enterprise tasks, eating into traditional Application Development and Maintenance (ADM) revenues—a key revenue stream for Indian IT companies.
Nasscom and several Indian IT leaders have, however, attempted to allay fears, saying that Indian technology services companies work closely with global enterprises that operate complex technology environments, with interconnected systems and fragmented data, and AI is unlikely to be adopted as a simple ‘out-of-the-box’ solution in large enterprises.
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