Infosys slides as Nifty IT drops on OpenAI DeployCo

What happened to Infosys and the IT pack

Infosys Ltd. traded lower in the latest move cited, with the share price down 2.97% from its previous close of Rs 1,180.30. The stock last traded at Rs 1,145.30. The decline came alongside a broader risk-off move in Indian IT, where investors have been reacting to both near-term triggers and longer-running concerns about demand and competition. In recent sessions highlighted, the selling has not been limited to one stock, with large and mid-cap IT names moving together. That pattern has kept Nifty IT among the weakest sectoral performers on several days mentioned.

OpenAI’s DeployCo announcement triggers fresh worries

On Tuesday, 12 May, the Nifty IT index plunged over 3% after OpenAI announced an AI deployment venture worth over $1 billion, called the OpenAI Deployment Company or DeployCo. The announcement heightened concerns that AI-native firms could intensify competition in enterprise services, an area that has been a core profit pool for Indian IT services providers. In early trade, the Nifty IT index dropped 3.3% to a day’s low of 28,351, making it one of the worst-performing sectoral indices on Dalal Street that day. Frontline IT stocks, including TCS, Infosys, HCL Tech and Persistent Systems, came under heavy selling pressure as the market repriced perceived disruption risk.

Where the selling was concentrated on 12 May

The decline on 12 May was broad-based, with multiple constituents losing more than 2.5% during trade. Persistent Systems was among the worst hit, down 4.25%, while Tata Consultancy Services fell 3.9% and Infosys declined 3.7%. Coforge slipped 3.23%. HCL Tech, Tech Mahindra, L&T Tech, LTIMindtree, Wipro and Mphasis also lost over 2.5% each, underscoring that the market response was sector-wide rather than company-specific.

Infosys and the top-10 market value threshold

Separately, Infosys was reported to have slipped out of India’s top 10 most valued companies, described as a significant shift for a bellwether IT services name. The coverage cited that Infosys lost over Rs 2 lakh crore in market value and was down 30% year to date, alongside a 7% fall in a single session. While these figures refer to a specific point in the drawdown, they frame how quickly leadership rankings can change when a sector comes under sustained pressure. The episode also reflects how market capitalisation, rather than just quarterly results, can influence investor perception during corrections.

February 4, 2026: a sharper sector-wide shock

Indian IT stocks also sold off sharply on February 4, 2026, as global tech weakness spilled into domestic trading. During that session, the NIFTY IT index dropped as much as 6.35% to an intraday low of 36,160.20, and all 10 constituents were lower at one point. Persistent Systems led the declines with a fall of over 6.5% during the session. Several large caps, including LTI Mindtree, Coforge, Infosys, HCL Technologies, Mphasis and Tata Consultancy Services, fell in a 5% to 8% range.

Infosys recorded one of its sharpest single-day moves in years during the same session. The stock fell as much as 7.3% to an intraday low of Rs 1,534 on the NSE, described as its biggest single-day fall since July 21, 2023. Another update linked to deeper intraday weakness noted it fell as much as 8.38% to Rs 1,517, described as its biggest single-day fall since March 16, 2020. At the day’s lowest level, Infosys market capitalisation was reported at Rs 6,21,000 crore after a drop of Rs 49,000 crore, and another update pegged market capitalisation at Rs 6,15,000 crore after a drop of Rs 56,000 crore.

Earnings and commentary also added pressure in April

A separate bout of selling was reported on Wednesday, 22 April, after HCL Technologies’ March quarter results and weak management commentary triggered a fresh selloff in the sector. IT stocks were described as already grappling with weak demand concerns and an AI-led scare. In that move, the Nifty IT index fell 3.35% to 30,665.35, with all index constituents in the red. HCL Tech was cited as the worst loser with a 9.7% decline, while other heavyweights like Infosys, TCS and Tech Mahindra also fell 2% to 3%.

Market impact: index levels, flows and market-cap erosion

The broader drawdown cited in the data has been significant. AI disruption fears and Rs 52,704 crore in FII outflows were linked to the Nifty IT index falling about 28% from its 52-week high. The index was noted to have hit a 52-week high of 40,301 in mid-2025 and fallen to around 29,071 by mid-March 2026. In that correction window, more than Rs 5.7 lakh crore in market capitalisation was reported to have been wiped from listed IT stocks.

On another selloff day, the Nifty IT index was reported to have tanked over 3%, taking the month-to-date decline to 20%, and as of the prior close the IT pack had lost Rs 5.05 lakh crore in market capitalisation, according to Capitaline data. In a related snapshot of large-cap pressure, fresh selling in five names (TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra) eroded Rs 84,448 crore from their combined market capitalisation intraday, falling to Rs 21,78,962 crore from Rs 22,63,411 crore.

Key data points at a glance

Analysis: why AI deployment news is moving IT stocks

OpenAI’s DeployCo announcement matters for listed IT services firms because it directly targets enterprise-scale AI deployment, which overlaps with a key growth narrative for services vendors. The market reaction described suggests investors are trying to assess whether AI-native platforms could capture a larger share of transformation budgets. At the same time, the selloffs tied to earnings commentary and global tech weakness indicate sentiment is being shaped by multiple factors, not a single headline. The repeated pattern of broad declines across index constituents also shows that the market is treating this as a sector risk rather than a company-specific issue.

Conclusion

Infosys’s latest decline and the wider drop in Nifty IT reflect a mix of near-term triggers, including OpenAI’s DeployCo announcement, and longer-running concerns around demand and AI-led disruption. Recent data points also highlight how quickly market capitalisation can compress during sector-wide risk reduction. Investors will continue to track sector commentary, global tech cues, and further updates around large-scale AI deployment initiatives that could reshape enterprise services spending.