IT stocks: The Indian IT services stocks such as HCL Technologies, Infosys, Wipro, LTIMIndtree, and Tata Consultancy (TCS), among others, have been under pressure since the start of 2026.
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Data show that the NIFTY IT index has slid over 10.5% year-to-date (YTD) and over 10% over the past 30 days (as of Thursday, February 12, early trade level).
Source: Google Finance
The latest round of sell-off in the Indian IT stocks is being witnessed following a sell-off in global tech and software stocks due to the fresh concern about the disruption AI start-ups will have on established companies.
Wall Street ended lower on Wednesday, with the Dow Jones Industrial Average snapping a three-day winning streak as a stronger-than-expected January jobs report failed to lift sentiment.
The blue-chip index fell 66.74 points, or 0.13%, to close at 50,121.40. The S&P 500 edged down less than a point to 6,941.47, while the Nasdaq Composite slipped 0.16% to 23,066.47.
Software stocks, which fuelled last week’s sell-off on concerns over artificial intelligence-driven disruption, came under renewed pressure on Wall Street on Wednesday.
Salesforce declined 4%, ServiceNow dropped 5%, and the iShares Expanded Tech-Software Sector ETF (IGV) slid more than 2%, leaving it nearly 30% below its 52-week high and firmly in bear market territory.
Cisco Systems tumbled 7% in extended trading after issuing weak guidance for the current quarter, CNBC reported.
Meanwhile, on Tuesday, shares of Charles Schwab, Morgan Stanley, and Raymond James also fell amid fresh worries about the impact of AI start-ups on established financial firms. The latest bout of selling followed fintech firm Altruist’s launch of a tax-planning tool on its AI platform, Hazel.
AI and Indian IT companies: What NASSCOM says
IT industry body Nasscom last week dismissed concerns that the rise of advanced artificial intelligence (AI) would disrupt India’s technology services sector, asserting that it will redefine and augment the industry’s role.
Nasscom, in a statement, noted that while new tools like the recently released Anthropic’s Claude Cowork aim to automate functions across legal, sales, marketing, and data analysis, the fear that they will bypass the Indian IT engine is “misplaced”.
“Indian technology services companies work closely with global enterprises that operate complex technology environments, with interconnected systems and fragmented data,” Nasscom said, adding that creating real business value from AI requires careful coordination with humans-in-the-loop, who possess deep industry knowledge and understand specific business contexts.
“AI is unlikely to be adopted as a simple ‘out-of-the-box’ solution in large enterprises.”
Instead, the sector is seeing a shift where technology service providers act as essential orchestrators for the transition from AI experimentation to large-scale deployment.
According to Nasscom, Indian tech firms have already begun “reinventing” themselves to stay ahead of the curve.
The industry body identified several emerging growth areas for the sector, fuelled by AI, including legacy system modernisation, AI-ready data foundations, and the deployment of intelligent agents across enterprise functions.
“As enterprise AI adoption moves from experimentation to large-scale deployment, technology services companies will play a critical role in enabling this transition,” Nasscom said, adding that these firms are well-positioned to build customised solutions that drive measurable returns on AI investments.
How top five IT stocks are performing in early trade on February 12
The NIFTY IT index, at the time of writing this report, was trading 3.59% lower at 33,834.05 levels, with all 12 constituents trading in the red.
The top loser was Coforge (down 4.29%). Next on the list were Infosys, Persistent Systems, and LTIMindtree (down in the range of 4.25% to 3.5%).
Tata Consultancy Services shares hit their 52-week low of ₹2,797.30 apiece on the NSE, while HCL Technologies was trading at ₹1,499.20, down 3.38%.
With inputs from PTI
