The Nifty IT Index declined by 1% today, dragging down broader market sentiment as Infosys shares slid over 3% in intraday trade. Several other IT majors including TCS, HCLTech, and Wipro also traded in the red, contributing to the downward pressure on the index.
Here are the three key reasons why tech stocks are falling today:
📉 1. Weak Global Cues from Nasdaq Tech Selloff
Tech stocks on the Nasdaq Composite came under pressure overnight due to fears of high-for-longer interest rates and slowing enterprise tech spending in the US. Given the strong correlation between Indian IT exports and global tech demand, Indian tech counters mirrored the bearish sentiment.
Nasdaq 100 dropped 1.2%
Cloud and SaaS stocks like Snowflake and Salesforce fell sharply
Fears of Fed hawkishness post US inflation data
💼 2. Muted Deal Pipeline Commentary in Q1FY26 Guidance
Some midcap and largecap IT firms have hinted at a soft Q1FY26 in terms of deal wins, especially from the BFSI and telecom sectors. Analysts say discretionary spending continues to stay weak due to macro uncertainty in Europe and the US.
Infosys reported delays in project ramp-ups
TCS flagged softer-than-expected demand from insurance clients
Analyst downgrades by global brokerages like JPMorgan and UBS
🔁 3. Profit Booking After Recent Rally in IT Stocks
IT stocks, including Infosys, Tech Mahindra, and Persistent Systems, had rallied over the last 2–3 weeks, gaining as much as 8–10% amid expectations of a turnaround in US tech demand.
Today’s dip is seen as technical profit booking, especially by institutional investors, ahead of earnings season.
🔎 Top IT Losers (Intraday % change):
Infosys: -3.1%
TCS: -1.6%
HCL Technologies: -1.4%
Tech Mahindra: -2.3%
LTIMindtree: -2.7%
The overall Nifty IT index is trading at around 36,200, down ~1% at the time of reporting.
📊 Outlook Ahead
Market experts suggest that while the long-term outlook for the Indian IT sector remains structurally intact, near-term headwinds from weak global tech budgets and Fed rate uncertainty could continue to create volatility.
❓ FAQ Section
Q1: Why is Infosys stock falling today?
A: Infosys shares dropped due to weak global tech sentiment, cautious Q1 guidance, and profit booking after recent gains.
Q2: What triggered the fall in the Nifty IT Index today?
A: Three main reasons: global tech stock selloff, muted deal pipeline visibility from Indian IT companies, and profit booking.
Q3: Which other tech stocks are down today?
A: Apart from Infosys, TCS, HCLTech, LTIMindtree, and Tech Mahindra also fell between 1–3%.
Q4: Will IT stocks recover soon?
A: Recovery depends on improvement in global tech demand, Fed rate trajectory, and strong Q1 results from Indian IT majors.
Q5: Is it a good time to invest in IT stocks?
A: Volatility may persist in the short term, but long-term investors may consider accumulating quality names on dips.
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Reported by Benny on June 23, 2025.
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