IT stocks came under heavy selling pressure on Thursday, with the Nifty IT index declining sharply by 5 per cent as investor concerns mounted over the potential impact of artificial intelligence-led disruption on software services earnings.
The Nifty IT index fell 4.8 per cent to 33,408.15, compared with the previous close of 35,095.15, with all constituent stocks trading in negative territory during the session. The broad-based sell-off reflected heightened nervousness about how rapid advances in AI technologies could reshape demand for traditional outsourcing and services models.
Major IT names led the decline, with Wipro, TCS, Coforge, LTIMindtree, Infosys and Oracle Financial Services Software among the top losers on the index. The weakness across large-cap and mid-cap players underlined the sector-wide nature of the correction.
Heavyweight TCS shares fell to a 52-week low of ₹2,766, down 5 per cent from the previous close of ₹2,909.80. Wipro also shed 5 per cent to a 52-week low of ₹218.50 against the previous close of ₹229.81. Infosys depreciated by 5 per cent to ₹1,395.50 compared to the previous close of ₹1,471.90.
Key stocks such as Wipro and Tech Mahindra are trading below important support levels, reflecting weak momentum, Drumil Vithlani, Technical Analyst at Bonanza, said.
Market participants said the drop was driven by intensifying fears that AI-driven automation could pressure billing rates and reduce demand for certain service lines, potentially weighing on medium-term revenue visibility. Concerns have also surfaced around increased investments required to adapt to evolving technologies, which may impact margins.
The sell-off comes amid broader global debates over the pace at which generative AI and automation tools are being adopted by enterprises, prompting investors to reassess growth assumptions for IT service providers. While companies have highlighted opportunities in AI-led transformation deals, the near-term uncertainty has led to cautious sentiment in the market.
Analysts expect volatility in IT stocks to persist as investors track deal pipelines, spending trends in key markets and management commentary on AI adoption strategies. For now, the sector remains under pressure as the market recalibrates expectations around the evolving technology landscape.
The RSI across the sector is in oversold territory, suggesting the possibility of a technical bounce; however, the broader trend remains negative. Any recovery towards resistance zones is likely to face selling pressure. In the near term, a cautious approach is advised, with a preference for a sell-on-rise strategy until the index regains strength above critical resistance levels, Bonanza analyst said.
Published on February 12, 2026