Indian IT stocks hit 52-week lows after OpenAI move

IT selloff deepens across large caps

Indian IT stocks came under sharp selling pressure as investors cut exposure to the sector, pushing several frontline names to fresh 52-week lows. Tata Consultancy Services (TCS), Infosys and HCL Technologies were among the key stocks that slipped to their yearly lows during the session. The weakness coincided with broader risk-off sentiment and fresh concerns about how fast AI-led business models could reshape demand for traditional IT services. Market participants also cited global macro uncertainty and volatility in crude oil as additional pressure points for export-heavy technology companies.

OpenAI’s new venture adds to disruption fears

The latest trigger highlighted by traders was OpenAI’s announcement that it was launching a new company backed by more than $1 billion to help organisations build and deploy AI. The market reaction reflected a growing worry that end-to-end AI deployment, automation and customisation services offered by global AI firms could compete with parts of the conventional outsourcing model. Investors have been debating whether increased automation could reduce dependence on labour-intensive services that have historically supported revenues and margins for Indian IT providers. The selloff also linked back to similar concerns raised earlier around new enterprise AI solutions from players such as Anthropic.

Which IT stocks fell the most

Tech Mahindra, Infosys, TCS, HCL Technologies and Wipro featured among the top losers within the IT pack, with declines of up to 4.44% mentioned in the session commentary. The pressure was not limited to large caps, as mid-cap IT names were also cited as weak in the broader sector move. Another data point in the coverage noted that the Nifty IT index dropped more than 3.5%, with all 10 constituents trading in the red.

Fresh 52-week lows for Infosys, TCS and HCLTech

Infosys fell to a 52-week low of Rs 1,123.10 during the session and later ended 3.09% lower at Rs 1,140.35. The market cap of Infosys was stated at Rs 4.62 crore in the source text. TCS slipped to a 52-week low of Rs 2,283.05, with its market cap reported at Rs 8.32 lakh crore, and the stock ended 3.84% lower at Rs 2,300.65. HCL Technologies touched a yearly low of Rs 1,142.65 and ended 4.11% lower at Rs 1,145.80.

Global risk factors also in focus

Beyond AI-led disruption concerns, the coverage pointed to global growth worries and broader market weakness as near-term headwinds. It also referenced investor unease linked to West Asia tensions, a fragile US-Iran ceasefire, and surging crude oil prices. Analysts noted that any signs of slowdown or spending cuts in developed markets typically weigh on Indian IT shares, given their dependence on overseas demand in the US and Europe. While a weaker rupee can support export-oriented IT firms by boosting the rupee value of dollar earnings, the immediate market focus was described as shifting to fears of delayed discretionary technology spending.

Technical levels: what analysts flagged

Jigar S Patel of Anand Rathi said support is placed at Rs 1,120 and resistance stands at Rs 1,185, adding that a decisive breakout above Rs 1,185 could open the door for further upside towards Rs 1,220. Patel added that, for the short term, the stock is expected to trade within the Rs 1,120 to Rs 1,220 range.

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 Rs 1,140 to Rs 1,150. Jagad placed immediate support at Rs 1,120, followed by major long-term support near Rs 1,080. He flagged resistance at Rs 1,200 to Rs 1,220, then Rs 1,260 and Rs 1,335 near the 50 EMA zone, and said the outlook remains weak unless the stock reclaims and sustains above Rs 1,260.

Infosys technical view: support, resistance and range

On Infosys, Patel said support is placed at Rs 1,100 and resistance stands at Rs 1,195, adding that a decisive breakout above Rs 1,195 could open the door for further upside towards Rs 1,265. He said the stock is expected to trade within the Rs 1,100 to Rs 1,265 range in the short term.

Jagad said Infosys is hovering near a crucial long-term support zone around Rs 1,120 to Rs 1,150 after a sharp correction from higher levels. He added that the structure remains weak with sustained bearish momentum, and that RSI has slipped near oversold territory, indicating exhaustion in selling pressure though a reversal is not confirmed. Jagad said a decisive breakdown below the current support zone 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.

TCS technical trend and volatility signals

Jagad said TCS remains in a strong downtrend, trading below key EMAs with bearish alignment on the weekly chart. He added that a breakdown below major support zones confirms continuation of bearish sentiment, while rising volatility suggests cautious trading ahead.

Key numbers at a glance

How broker notes framed the broader pressure

Separate notes referenced in the coverage pointed to global cues and sentiment spillovers. ICICI Securities said the Nasdaq IT services basket corrected meaningfully, dragging Indian IT ADRs lower and contributing to risk-off sentiment that spilled into domestic markets. The same set of reports cited Infosys ADR declining 10% and Wipro ADR falling 5% in the prior session, acting as a sentiment proxy for domestic trading.

A Jefferies note cited in the coverage said AI may structurally change the IT business mix towards consulting and implementation while shrinking managed services, adding risks and cyclicality. Another segment of the coverage quoted JP Morgan taking a contrarian stance, describing dividend yield and free cash flow signals as “deep value” and recommending a barbell approach that included overweight ratings on Infosys and TCS alongside select growth names.

Conclusion

The session reinforced how quickly sentiment can swing against Indian IT stocks when investors see both macro risk and potential structural disruption from AI-led delivery models. With multiple frontline names at or near 52-week lows, traders are likely to keep watch on the technical support zones highlighted by analysts and on further developments around enterprise AI offerings and client technology spending signals.