The Indian IT sector, which has recovered sharply by nearly 20% in the last month alone, may be facing some pressure again on the last trading day of July.
Global investors rotated back into AI-linked memory and chipmakers on Thursday, with Sandisk surging as much as 24.11% to a high of $1,268.40.
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On the other end of the tech trade spectrum were software companies like Accenture Plc, Cognizant Technology Solutions Corp., and Salesforce Inc which plunged as much as 7%. American Depositary Receipts of Infosys Ltd. and Wipro Ltd. also slid.
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Infosys declined 5.4% to a low of $11.91, while Wipro traded 0.25% lower at $1.97 as of 10:55 IST (1:25 p.m. EST). The selloff may sour sentiment back home, according to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, who emphasised that the Indian IT sector should "brace for impact."
The market expert warned of a near to medium term sentiment ripple effect on the IT sector, underlining that "global tech stocks' impact will be creating some kind of pressure of IT companies.
Among these companies, he said, the stocks that have risen the most in recent sessions will be feel the most heat. "By and large, impact will be on IT index... especially those stocks that went up in recent days will be under pressure," Bathini highlighted.
Shares of Infosys have surged nearly 11% in the last seven sessions. Wipro's stock has risen 5.20% in the last week, while TCS has gone up 7.87%. Others like HCL Technologies Ltd. and LTTS have risen 6.43% and 4.13% during the last seven trading sessions.
Memory Makers Stage Comeback
Wall Street's chip and memory manufacturers staged a sharp recovery on Thursday, after a week of heavy dumping lowered valuations and made them attractive again.
The rebound was backed by Samsung Electronics' forward-looking commentary on memory and storage chips like RAM, DRAM and NAND.
"In H2 2026, the Memory Business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI. Meanwhile, growth in demand for server DRAM, eSSDs, and HBM is expected to accelerate. This is projected to keep the market undersupplied, despite partial demand moderation in mobile and PCs," the market leader said.
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