Indian IT stocks hit 52-week lows in 2026 selloff

What triggered the sharp fall in IT shares

Shares of India’s large IT services companies fell sharply on Tuesday, with several stocks hitting fresh 52-week lows amid heavy selling across the sector. The weakness came a day after OpenAI said it was launching a new company backed by more than $1 billion to help organisations build and deploy artificial intelligence. Traders also cited broader risk-off cues, including global growth worries and wider market weakness. The selling pressure was broad-based, with multiple reports describing the move as sector-wide de-risking rather than a single company-specific event.

The Nifty IT index dropped more than 3.5% in one market update, and all 10 constituents were reported to be trading in the red during the session. Another update said the Nifty IT index has fallen over 8% during the past month, underscoring sustained pressure in the pack. Alongside AI-led disruption concerns, commentary also pointed to geopolitical unease, including fears linked to a fragile US-Iran ceasefire, and higher crude oil prices weighing on global sentiment.

Stocks that led the decline

The day’s move was led by frontline names, with Tech Mahindra, Infosys, TCS, HCL Technologies and Wipro among the top losers in the sector, falling up to 4.44% as per one snapshot. In the same set of reports, Infosys, TCS and HCL Technologies were specifically noted as hitting fresh 52-week lows in the session.

In another market snapshot, Infosys dropped 3.87% to Rs 1,131.40, while TCS declined 4.15% to Rs 2,293.70. Tech Mahindra fell 3.64%, HCLTech slipped 3.32% and Wipro declined 2.94%. Reports also flagged declines in other IT names such as Coforge and Persistent Systems, with the broader narrative focused on pressure across large-caps and select mid-caps.

Fresh 52-week lows for Infosys, TCS and HCLTech

Infosys fell to a 52-week low of Rs 1123.10 during the session and later ended 3.09% lower at Rs 1140.35. The market capitalisation of the firm was stated at Rs 4.62 crore in the report. The stock was described as being near a key long-term support zone, with the market watching whether the support holds amid a prolonged correction.

TCS slipped to a 52-week low of Rs 2283.05. The firm’s market capitalisation was reported at Rs 8.32 lakh crore. The stock ended 3.84% lower at Rs 2300.65, with technical commentary noting the stock is trading below key moving averages and remains in a strong downtrend.

HCL Technologies fell to a yearly low of Rs 1142.65 and ended 4.11% lower at Rs 1145.80. The stock’s weakness was discussed in the context of a bearish chart structure and multiple broken support zones, with analysts highlighting near-term and long-term technical levels.

Why OpenAI’s announcement became a market talking point

Several market updates linked the selloff to investor concerns that new AI-focused business models could affect the long-term growth of traditional IT services providers. The fear is that end-to-end AI deployment, automation and customisation services offered by global AI players could bypass parts of the traditional outsourcing model used by Indian IT companies.

The reports also highlighted a concern that AI-driven automation may reduce dependence on labour-intensive services, which have historically been a major revenue and margin driver for large Indian IT firms. This theme added to an already cautious backdrop, where investors were assessing the impact of global uncertainty on discretionary technology spending.

Macro overhang: growth worries, geopolitics and crude

Beyond AI disruption fears, the sector was also weighed down by global macro uncertainty. One report said the selloff came as concerns over a fragile US-Iran ceasefire and surging crude oil prices rattled global markets. That risk-off mood was described as prompting investors to cut exposure to technology shares.

Reports also reiterated a structural sensitivity for Indian IT services companies: a significant share of revenues comes from global clients, especially in banking, financial services and technology. Any signs of slowdown or spending cuts in developed markets such as the US and Europe typically feed into lower risk appetite for the sector. While a weaker rupee generally supports export-oriented IT companies by lifting the value of dollar earnings, analysts in the reports said markets were more focused on growth risks and delayed tech spending.

Key technical levels flagged by analysts

Analysts quoted in the reports shared near-term trading ranges and cautionary signals for the three large-cap names.

For HCL Technologies, Jigar S Patel of Anand Rathi said support is placed at Rs 1120, while resistance stands at Rs 1185. He added that a decisive breakout above Rs 1185 could open the door for upside towards Rs 1220, and that the stock may trade in the Rs 1120 to Rs 1220 range in the short term.

Virat Jagad, Senior Technical Research Analyst at Bonanza, said HCL Technologies remains in a strong bearish trend after breaking multiple support zones and recently hitting a fresh 52-week low near 1140 to 1150. He placed immediate support at Rs 1120, followed by major long-term support near Rs 1080. Jagad cited resistance at Rs 1200 to Rs 1220, then Rs 1260 and Rs 1335 near the 50 EMA zone, adding that the outlook remains weak unless the stock sustains above Rs 1260.

For TCS, Patel said support is placed at Rs 2240, while resistance stands at Rs 2415. He added a breakout above Rs 2415 could push the stock towards Rs 2445, and that it may trade within Rs 2240 to Rs 2445 in the short term. Jagad said TCS remains in a strong downtrend, trading below key EMAs with bearish alignment visible on the weekly chart, and that volatility suggests caution.

On Infosys, Jagad said the stock is hovering near a crucial long-term support zone around Rs 1,120 to Rs 1,150 after a sharp correction. He noted RSI has slipped near oversold territory, but said confirmation of a reversal is still absent. Jagad added that a decisive breakdown could trigger further downside towards Rs 1,050, while any pullback may face resistance near Rs 1,250 to Rs 1,300 where key EMAs are placed.

Sector snapshot: index pressure and month-to-date weakness

Multiple data points in the reports indicated persistent pressure on the IT basket. One update said the Nifty IT index has fallen over 8% during the past month. Another described February as particularly weak, stating the index fell 3.5% to 30,417.75, touched a fresh 52-week low, and was down 20% in February.

The same February snapshot also claimed Rs 5.05 lakh crore of market capitalisation was erased during the month. While the reports used different time windows and market snapshots, the common message was consistent: selling has been broad-based, and volatility has remained elevated as investors reassess growth and business-model risks.

Summary table: prices, lows and key levels

Brokerage commentary: guidance concerns and target changes

Separately, reports also cited growth and guidance concerns for HCL Technologies and Infosys. One report said analysts believe HCL Technology’s softer revenue guidance versus expectations and an AI deflation impact of 3-5% could raise concerns about overall industry growth for FY27. The same coverage cited HCL’s FY27 revenue growth guidance at 1-4% in constant currency, along with headwinds such as client-specific ramp-downs (around 50 bps drag), telecom discretionary cuts, and a 2-3% AI deflation impact.

Brokerage calls mentioned included Mirae Asset Sharekhan maintaining a ‘Buy’ rating on HCL with a price target of Rs 1,380, while JM Financial Institutional Securities cut estimates by 1-2% for FY27-28E and downgraded the stock to ‘REDUCE’ with a revised target price of Rs 1,350 (from Rs 1,440 earlier). For Infosys, Axis Securities and ICICI Securities were cited as maintaining ‘HOLD’ ratings with target prices of Rs 1,330, using valuation multiples linked to FY28E.

Jefferies was also cited as downgrading its rating on six big players, with Infosys downgraded to HOLD from BUY and its target price reduced to Rs 1,290 from Rs 1,880. The same note said Jefferies trimmed HCL Technologies to HOLD from BUY and reduced its target price to Rs 1,390 from Rs 1,885.

Why this matters for investors watching Indian IT

The session reinforced how quickly sentiment can shift for export-heavy IT services firms when markets price in slower global tech spending and structural changes from automation. The reports pointed to a combination of macro risk, client budget caution, and a growing debate on whether AI deployment platforms could compress demand for traditional managed services and manpower-led delivery models.

For near-term traders, the discussion in the reports was dominated by support and resistance bands and warnings about elevated volatility. For longer-term investors, the focus moved to guidance visibility, the pace of AI-driven pricing pressure described as “AI deflation,” and how quickly large vendors can reposition portfolios toward consulting, implementation, and higher-value work.

Conclusion

Indian IT stocks saw a sharp selloff, with Infosys, TCS and HCL Technologies hitting fresh 52-week lows amid broad sector weakness. The immediate catalyst in the reports was OpenAI’s announcement of a $1 billion-backed AI venture, alongside global growth concerns and risk-off cues. Analysts tracked key support zones around Rs 1,120 for Infosys and HCLTech and around Rs 2,240 for TCS, while brokerages highlighted FY27 growth visibility and AI-related pricing pressure as key themes to monitor.