The Indian IT stocks experienced substantial selling activity on Thursday February 12 as HCL Technologies, Infosys and Tata Consultancy Services (TCS) stock prices pushed market indexes downward. The NIFTY IT index has now plunged over 10% in 2026 so far, reflecting sustained weakness in the sector.
The latest decline follows a sharp sell-off in global technology and software stocks amid fresh concerns that artificial intelligence (AI) start-ups could disrupt established companies.
NIFTY IT Extends Losses
The NIFTY IT index showed a decrease of 3.59% during early Thursday trading, reaching 33,834.05, as all 12 component stocks experienced losses. The index has dropped more than 10.5% since the beginning of the year, while it has decreased over 10% during the last month.
Coforge performed the worst among competitors, decreasing 4.29%. The three companies Infosys, Persistent Systems and LTIMindtree experienced stock price losses between 3.5% and 4.25%.
The NSE reported that TCS shares reached a 52-week low of ₹2,797.30, while HCL Technologies experienced a decrease of 3.38% to ₹1,499.20. The share price of Infosys fell almost 5% to ₹1,399, making it one of the main factors that decreased NIFTY50 performance.
Global Tech Rout Spills Over
The decline of Indian IT stocks parallels the losses experienced on Wall Street. US markets ended lower on Wednesday as software stocks faced new selling pressure which countered the positive impact of better-than-expected January employment figures.
The Dow Jones Industrial Average decreased 0.13% to 50,121.40, while the S&P 500 index experienced a small decline and the Nasdaq Composite index fell 0.16%.
The major software companies in the United States continued their stock price declines:
Salesforce experienced a 4% decrease
ServiceNow experienced a 5% decrease
The iShares Expanded Tech-Software Sector ETF (IGV) decreased more than 2%, remaining approximately 30% below its 52-week peak.
Cisco Systems experienced a 7% decrease in extended trading after the company provided weak guidance for its upcoming quarter.
Investor anxiety has intensified amid fears that emerging AI platforms could disrupt traditional technology and financial services firms. Fintech company Altruist launched its tax-planning tool which uses its AI platform Hazel and this development raised concerns throughout the week.
What Nasscom Says on AI Disruption
The industry organization Nasscom has rejected the idea that advanced AI technology will disrupt the IT services industry in India.
Nasscom released a statement which said that people who worry about AI making Indian IT companies obsolete are showing signs of misunderstanding the situation. The body noted that large enterprises operate complex, interconnected technology environments requiring customised integration rather than plug-and-play AI solutions.
Nasscom stated that large enterprises will not adopt AI solutions through simple “out-of-the-box” methods because Indian IT companies will develop systems for large-scale AI implementation.
Nasscom has detected new business possibilities in three areas which are The emergence of new legacy system modernisation opportunities, The development of AI-ready data infrastructure and The implementation of intelligent enterprise agents.
The industry group confirmed that Indian technology services firms possess the ability to produce measurable business outcomes through enterprise AI implementation.
Broader Markets Under Pressure
The IT stock declines created a significant negative impact on benchmark indexes which occurred before the weekly derivatives expiration.
The SENSEX decreased by 391 points to 83,843 at 9:29 am, while NIFTY50 dropped 128 points to 25,828 after reaching an intraday low of 25,836.
The Media, Pharma, PSU Bank, Realty, Consumer Durables, Oil & Gas and Auto sectors all experienced declines between 0.2% and 1.2%, which extended beyond the IT sector.
The NIFTY Midcap 100 index decreased by 0.77% while the NIFTY Smallcap 100 index showed a 0.85% reduction.
The NSE market displayed weak breadth because 1,903 stocks moved down while 767 stocks advanced.
Key Takeaway
The ongoing correction in IT stocks reflects a combination of global tech weakness, AI disruption fears and valuation concerns. The industry leaders and Nasscom both maintain a positive outlook for AI-powered opportunities, while the current period of market instability will continue until global market conditions determine how investors feel.
