- Nifty IT index fell over 4% on June 3, dragged by weakness in IT heavyweights
- Shares of TCS, Infosys, HCLTech, and Tech Mahindra dropped 2-6% after Nvidia's event
- Nifty 50 fell 0.8% and Sensex declined 0.9%, with all sectoral indices trading lower
The Nifty IT index slumped over 4% in early trade on Wednesday, June 3, dragged by weakness in IT heavyweights, following a global AI rally. Shares of Tata Consultancy Services, Infosys, HCLTech, and Tech Mahindra dropped 2-7% after opening bell, snapping a two-day winning streak after AI giant Nvidia's GTC Taipei Keynote event at COMPUTEX 2026 on Monday.
IT stocks dragged the domestic benchmark indices lower as the Nifty 50 fell 0.8% to 23,290.45, while the 30-share BSE Sensex declined as much as 0.9%, or over 700 points, to 73,297. All sectoral indices traded lower with the Nifty IT index down 4.3% at 9:50 pm. Nifty IT index index recorded the biggest single day fall since April 25, 2026, while shares of India's largest software services giant, TCS hit a nearly a four-month low as the stock witnessed the single-day drop sine Feb 4, 2026.
ALSO READ: Infosys, TCS, HCLTech, Wipro Sell-Off Deepens; F&O Data Shows Surge In Bearish Positions On IT
After gaining nearly 8% in two consecutive sessions, Nifty IT index turned volatile amid profit booking witnessed in key counters and a technical reversal after recent upside moves. Weakness in the broader structural setup and a pullback in global software stocks also weighed on the sector. In the IT services pack, shares of LTM recorded the biggest single day fall since Feb. 24, 2026. The positioning suggests traders are adding new bearish bets in the counter.
Foreign brokerages have turned cautious on the space. The downward slump comes after the domestic IT pack after Nvidia CEO Jensen Huang on Monday said that Indian IT firms are well-placed for AI implementation while adressing the GTC Taipei Keynote at COMPUTEX 2026 Event. Huang dispelled concerns that artificial intelligence might render traditional coding obsolete. He also rejected fears of AI replacing software, instead emphasized that it will create the largest opportunity ever for software companies.
ALSO READ: TCS Shares See Biggest Fall Since February As Stock Slumps Over 7%- Here's Why
TCS Share Price Today
Despite the two-day run, tech stocks pared gains to trade at mulit-month lows on Wednesday. This comes even as Asia-Pacific markets opened broadly higher Wednesday, with Japan's Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over US-Iran negotiations aimed at ending the Middle East conflict. Japan's Nikkei 225 extended early gains to rise 2.94%, while the Topix added 2.14%. Mainland China's CSI 300 was 1.52% higher, while Hong Kong's Hang Seng lost 1.73%.
IT heavyweights dominated the fresh shorts screen. TCS, Infosys, HCLTech, Wipro, Persistent Systems, Coforge and KPIT Tech feature among stocks showing fresh short build-up. The concentration of fresh shorts across multiple technology names points to continued bearish sentiment towards the IT sector in the derivatives market. These are all strong enough to stand alone as individual F&O blogs and are based directly on today's positioning data rather than any expiry-specific narrative.
IT Stocks Turn Volatile On Profit Booking
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