Indian IT shares have now recovered 3-5 per cent from the day’s low on Friday. The Nifty IT index too has seen a smart recovery after cracking whopping 5% for the second straight session, tracking global cues and AI concerns. It’s been a week of heavy losses for the entire list of tech sector stocks, and frontline names such as Infosys, TCS, Wipro, and HCL Technologies bore the brunt of the slide.
There is finally some sight of green in the markets. Stocks like Hexaware Technologies and Persistent are trading higher now, in the green zone. This pullback is seen as a welcome development after the sector has fallen 10% over the past week and is down about 13% so far this year. In the previous session alone, the Nifty IT Index tumbled 5%, with midcap and large cap stocks seeing sharp cut in intra-day trade.
Key tech stocks stage recovery after plunging 5%
The selling across the IT sector was broad-based before the pullback. Infosys recovered around 5% from day’s low while Tata Consultancy Services recouped 4% after hitting 52-week low of Rs 2,620. HCL Technologies had falled 4.85% before staging the current recovery, and Wipro fell 3.7% before the 2% pullback. Midcap stocks also saw a smart recovery. Earlier today, Persistent Systems lost 3%, Coforge dropped 5.32%, KPIT Technologies fell nearly 8%, and Tech Mahindra was down 3.55%.
All major Indian IT stocks in the red for the week
All major Indian IT stocks were trading in the red on a weekly basis, with heavyweights leading the decline. If we track the 5-day charts, Infosys fell 10% so far this week, while Tata Consultancy Services dropped 8% this week to a fresh 52-week low. HCL Technologies too lost 8% and Wipro slipped 6% this week so far, reflecting sustained selling pressure in frontline counters. Tech Mahindra was down 4%, and LTIMindtree fell 7% this week, so far. Among other prominent names, Tata Elxsi too declined 7% while Mphasis shed 4%, and Persistent Systems dropped 6% in the last 5 trading sessions so far.
Midcap and specialised IT firms such as Coforge, Sonata Software, Ramco Systems and Happiest Minds Technologies also posted declines, underscoring the broad-based weakness across the sector.
Tech stocks that hit 52-week low this week
Several frontline technology stocks have fallen to fresh 52-week lows this week amid sustained selling in the IT pack. Infosys touched a 52-week low of Rs 1,281.50 on February 13, 2026. Tata Consultancy Services, which had climbed to a 52-week high of Rs 4,021.75 on February 12, 2025, dropped to a 52-week low of Rs 2,585.00 on February 13, 2026. Oracle Financial Services Software recorded a 52-week low of Rs 6,400.00 on the same day, while Wipro declined to Rs 209.01, its lowest level in the past year, pointing to continued weakness across major technology counters.
AI spending worries weigh on sentiment
US technology stocks have faced sustained pressure amid doubts over whether massive spending on artificial intelligence will deliver returns quickly enough.
Amazon, Google, Meta and Microsoft are expected to collectively spend nearly $650 billion on AI-related investments. Recent earnings commentary from these companies pointed to aggressive capital expenditure plans, raising concerns about margins and timelines for revenue generation.
Those concerns have filtered into Indian IT counters, given their close links to global clients and technology budgets.
Fear of automation hits services model
There is a possible anxiety over AI-led disruption of the traditional services model used by Indian IT companies.
Advanced systems capable of executing full workflows, rather than simply assisting coders, have sparked worries about “seat compression,” or lower staffing needs. Since revenue for many Indian firms is tied to billing hours and manpower, greater automation could affect growth assumptions.
There are also expectations that clients may move from time-and-material contracts to outcome-based pricing. While such a move could change revenue visibility in the near term, companies may need time to adjust their pricing structures.
The current slide also follows a rally in late 2025, when optimism around artificial intelligence lifted valuations across the sector.
With risk appetite weakening globally, stocks that were trading at elevated multiples have seen profit-taking. The Nifty IT index has underperformed the broader Nifty 50, which has remained largely flat over the same period.
Conclusion
Indian IT stocks are facing pressure from several fronts at once: a global sell-off in technology shares, concerns over heavy AI spending, and questions about how automation could affect the services model that underpins the sector.
With the Nifty IT index hitting multi-month lows and large cap names hitting fresh 52-week troughs, the sector’s near-term direction will likely depend on global tech sentiment and clarity around how AI investments translate into earnings. The current pullback is making many investors optimistic.