Nifty IT index hit its lowest level since April 2023 during the trading session on Tuesday, June 30 at 26,425 points. The index was down more than 42% from record highs and 30% since February 2026, while all its constituents remained in red as Tata Consultancy Services, Infosys and HCL Tech touched multi-year lows.
The decline in IT stocks was driven by KPIT Technolgies, falling 5.26% intraday to Rs 675, followed by Tata Technologies, down 3.26% to Rs 692.15, Infosys slipped 2.97% to Rs 1,006, lowest level since Sept 2020 and Wipro dropped 2.93% to Rs 170.33.
Shares of Tata Consultancy Services Ltd fell 2.84% to Rs 2.037.5, lowest level since June 2020, while HCL Technologies remained 2.25% down at Rs 1,078.35, lowest since May 2023.
ALSO READ: Axis Bank, ICICI Bank, SBI, Federal Bank Among Anand Rathi's Top BFSI Bets — Check List
Why Are IT Stocks Falling?
The Indian IT sector has continued to underperform, with the Nifty IT index extending its losing streak to a third consecutive session and hitting a fresh 52-week low in today's trade. Harshal Dasani, Business Head at INVasset PMS said, "The action confirms what has been building structurally rather than reflecting any single-day catalyst. The drivers are well-understood. AI is continuing to compress the rate-times-volume equation that anchored sector margins for two decades, discretionary spending in the largest customer verticals remains soft, the Accenture-led repricing of global IT services valuations earlier in the cycle was a signal that the market had under-read."
ALSO READ: Eicher Skids 6.5% As New Delhi EV Policy Leaves Royal Enfield Sputtering
Dasani believes that the current downside is the market continuing to mark IT services to a structurally lower revenue and margin trajectory. "The 52-week lows are not the bottom of the range; they are the new resting place from which the next set of valuation-led conversations begins. The stance on Indian IT remains firmly cautious, and the structurally lower multiple regime is now the operating framework rather than a temporary correction," he said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
