Why Nifty IT Is Cracking? – Details Inside

Indian stock markets experienced a steep fall on Friday, April 24, 2026. This is because the Nifty 50 had fallen by more than 275 points, accounting to 1.14% below the level of 23,900 points. The BSE Sensex fell by almost 1,100 points. IT shares were the worst performers in the index.

IT Heavyweights Lead the Decline

Market vulnerability was primarily associated with the IT industry, which was leading the pack. The share prices of Infosys and TCS fell by 6 percent and 5 percent, respectively, thus contributing about 90 points to the fall in the Nifty index. One reason for this could be the poor expectation of profit from these companies.

Nifty IT Index Logs Sharpest Weekly Fall in Over Six Years

The Nifty IT Index was identified as the sector that underperformed the most. The only exception is Oracle Financial Services Software, which could manage to be just slightly above the breakeven point, while others fell in the range of 2% to 6.4%. In terms of weekly movement, the index has experienced more than 10% declines week-on-week, which is the largest decline it has seen since the pandemic period.

Infosys: Weak Guidance Triggers Sharp Sell-Off

Infosys initiated the fall as its quarterly earnings came through below expectations. Its share price fell by about 6% to an all-time low. The biggest concern for the company was its forecasted revenue growth rate of between 1.5% and 3.5% on a constant currency basis.

There were issues in discretionary spending as well as slow decision-making towards the latter stages of the quarter. This is a sign of continuing uncertainty in the economic environment.

HCLTech: Growth Strong, Outlook Cautious

For Q4FY26, HCL Technologies reported a net profit of ₹4,488 crore, witnessing a 4.2% YoY growth and 10.1% growth quarter-on-quarter. Revenue increased by 12.34% YoY to ₹33,981 crore, although the sequential growth was muted at 0.32%. An interim dividend of ₹24 per share was also announced.

Nonetheless, the outlook is conservative. The management expects revenue growth in FY27 to be between 1% to 4% in constant currency, which is lower than their FY26 revenue growth guidance of 4% to 4.5%. They expect EBIT margins to be between 17.5% to 18.5%.

The management expressed that performance did not meet market expectations because of weakness in some segments. Lower discretionary spends and decision delays on the part of clients, particularly in the telecom and enterprise segments, have contributed to weak visibility and deal pipeline.

Wipro: Buyback Fails to Lift Sentiment

The Indian multinational corporation Wipro made the biggest share repurchase in its history amounting to ₹15,000 crore. Nevertheless, the share price of Wipro was still experiencing downward pressure due to the weak guidance for Q1FY27.

For the period of Q1FY27, the guidance was provided on the IT services revenue at a level between $2,597 million and $2,651 million. In terms of constant currency, this translates to growth expectations of (-)2.0% to 0%.

TCS: Strong Deal Wins, But Sentiment Weak

Tata Consultancy Services delivered a third straight quarter of sequential growth, posting 1.2% growth on a constant currency basis amid geopolitical and macroeconomic headwinds.

The company remained buoyant in terms of orders, recording an impressive $12 billion in total contract value (TCV), comprised of three significant orders from Marks & Spencer, a UK-based telecommunications operator, and an American healthcare and pharmaceutical retailer. Nevertheless, this was somewhat countered by issues affecting the broader industry.

₹2.17 Lakh Crore Market Cap Erosion in a Week

What Is Driving the Sell-Off?

The continuous selling pressure in IT stocks is due to both structural and cyclical reasons. The conservative revenue outlook by big IT companies has cast doubts over future growth expectations. The sluggish discretionary spending by global clients remains a burden for deal execution and project roll-outs. Meanwhile, macroeconomic and geopolitical risks are contributing to deferred decision cycles, further pressuring the industry.

These elements have formed an adverse feedback loop, resulting in one of the steepest downturns in the IT industry.