The broader stock market remained in positive territory in the intraday trading session today, but the information technology (IT) sector moved in the opposite direction.
The Nifty IT index slipped nearly 2% during the intraday session. Furthermore, several heavyweight technology stocks are seeing selling pressure.
Looking at the broader market, both the benchmark indices were trading in the green at this hour. The Sensex was up nearly 300 points above the 78,200 mark, while the Nifty 50 was trading above 24,400.
Why are tech stocks falling today?
One of the key reasons appears to be profit booking after a sharp rally over the past few trading sessions. The Nifty IT index had gained nearly 7% in the last one week and has surged around 19% over the past month.
However, despite this recent recovery, the index continues to remain around 19% lower so far in 2026.
Heavyweight IT stocks under pressure
Selling was visible across most large-cap information technology companies.
Tata Consultancy Services (TCS) declined nearly 3% during the intraday session. Infosys and Wipro were down around 2% each.
Other major names, including HCL Technologies, Tech Mahindra and LTM, also traded lower, falling between 1-2%.
Technical view: Is the correction just a pause in the rally?
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, believes the recent decline is more of a profit-booking phase than a sign of a trend reversal.
He said, “The Nifty IT index witnessed profit booking after its recent sharp rally, declining nearly 1.6% as it faced resistance around the 31,000–31,200 zone. The weakness appears to be driven by a combination of global IT softness, cautious sentiment ahead of key earnings, and traders booking profits at higher levels, rather than a deterioration in the broader trend.
Technically, the outlook remains constructive as the index continues to trade above its 50-day EMA, while the MACD is in a positive crossover, RSI is holding near 65, and +DI remains above -DI with a rising ADX, indicating underlying bullish momentum.
As long as the index sustains above the 30,000–29,250 support zone, the medium-term trend is likely to remain positive. On the upside, 31,200–32,000 remains the key resistance area, and a decisive breakout above this zone could trigger the next leg of the rally.”
Why are investors booking profits?
The recent rally in Indian technology stocks came at a time when investors shifted towards software services companies amid weakness in artificial intelligence-linked semiconductor and hardware stocks globally.
What are analysts saying?
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, believes the sector is currently witnessing heightened volatility.
He said, “Tech stocks are witnessing huge volatility in response to quarterly results, expectations and unprecedented speculative trading. In South Korea, particularly, volatility is excessive. Two stocks in Kospi – Samsung and SK Hynix – which account for 52% of Kospi’s market capitalisation have been moving up and down sharply. In early trade this morning Kospi is up by 16% driven by 25% spike in Samsung and 21% spike in SK Hynix.”