Nifty IT plunges 6% as Sensex drops 700 points

IT selloff deepens for a second straight session

Indian equity benchmarks traded sharply lower as information technology (IT) stocks extended losses for a second consecutive session. The fall in software exporters pulled the broader market into the red even as supportive cues such as lower crude oil prices were cited. In early trade, the decline was led by heavyweights across the Nifty IT pack. The selloff also renewed concerns around discretionary spending and slower deal conversion, as flagged in market commentary.

Where the benchmarks were trading

At 10:25 IST, the S&P BSE Sensex tumbled 723.41 points, or 0.94%, to 76,689.88. The Nifty 50 index declined 194.95 points, or 0.81%, to 23,971.95. In another market update at 10:13 am, Sensex was down 635.85 points, or 0.84%, at 76,774.13, while Nifty50 fell 170.10 points, or 0.70%, to 23,997.90. A separate update also said the Nifty 50 was down 0.85% to 23,962.8, while Sensex was down over 700 points. These intraday readings showed persistent pressure as the session progressed.

Nifty IT was the clear laggard

The Nifty IT index was the worst-performing sectoral index during the selloff. At one point, the Nifty IT index tumbled 5.30% to 26,558.25, and the index was down 8.48% across the two consecutive sessions. Another update put the Nifty IT index down 6.02% to 26,752.85, reinforcing the severity of the move. The sharp drop in IT stood out against the broader market, where multiple sectors were also under pressure but IT remained the main drag.

Biggest decliners in IT heavyweights

Large-cap and mid-cap IT names fell in tandem. In one snapshot, Infosys (down 7.57%), Tata Consultancy Services (down 5.74%), Mphasis (down 5.23%), HCL Technologies (down 4.6%), LTIMindtree (down 4.58%), Persistent Systems (down 4.43%), Tech Mahindra (down 4.4%), Wipro (down 3.54%), Coforge (down 2.82%) and Oracle Financial Services Software (down 0.54%) were all lower. In another update, Infosys was reported as the biggest casualty, plunging 8.03% to Rs 1,037. As of 9:38 am, Infosys was also quoted down 8.05% at Rs 1,036.7, making it the worst-performing Nifty stock at the time.

What triggered the renewed pressure on IT stocks

The sharp fall in major Indian IT stocks followed a global cue: Accenture lowered the upper end of its annual revenue growth forecast. The development revived worries around weak discretionary spending and slower deal conversion, and raised fresh questions over the pace of demand recovery. Alongside this, market updates also pointed to concerns about shrinking margins in the tech sector and AI-led disruptions denting sentiment. Another market note said investor caution intensified after stronger-than-expected US jobs data for January dampened hopes of near-term rate cuts by the Federal Reserve.

Infosys-specific context and key price points

Separately, Infosys shares fell as much as 7% on a Friday after the company reported its Q4 FY26 results and issued a subdued growth outlook. The stock declined to an over 5-year low and was the top loser on the benchmark Nifty 50 index in that session. Infosys ended at Rs 1,154.6 compared with its previous close of Rs 1,231.8 on the NSE, as per the update. Another market note also said many frontline IT stocks were trading significantly below their 52-week highs, with Infosys hitting a fresh one-year low during the session.

How much the IT pack dragged the Sensex

The decline in IT bellwethers had a measurable impact on the headline index. One update said selling pressure in Infosys, TCS, HCL Technologies and Tech Mahindra collectively wiped out over 400 points from the Sensex. That highlights the extent to which index heavyweights amplified the move in the benchmarks.

Market breadth and trading conditions

A later market update said the Sensex was down 720.74 points, or 0.92%, at 77,795.75, while the Nifty was down 176.45 points, or 0.72%, at 24,201.65. The same update reported 1,646 shares advanced, 2,083 shares declined, and 153 shares were unchanged. The breadth data indicated that declines outpaced advances, consistent with a risk-off tape during the selloff.

A broader slide across multiple sessions

Beyond the second-session drop, other market updates described a longer losing streak for IT. In one session, IT shares extended losses for the fifth consecutive trading session, with the Nifty IT index slumping 3.51% to 30,442.65 and falling 7.95% over five consecutive sessions. Another update said IT shares faced intense selling pressure for a third straight session and that the IT index had crashed 12% in the last three trading sessions, hitting an intraday low after falling as much as 5.24% to 31,423. In a separate market-wide selloff, the Sensex fell as much as 828 points and Nifty50 touched an intraday low of 25,558, dragged down by losses in IT heavyweights among others.

Key data points at a glance

Conclusion

The session underscored how quickly IT heavyweights can drive headline indices when sector sentiment turns. With the Nifty IT index falling sharply and Infosys seeing steep declines in multiple updates, the market reaction reflected renewed caution around demand recovery, discretionary spending, and global rate-cut expectations. Investors will continue tracking company commentary and global cues that affect tech spending, especially after Accenture’s forecast change and mixed signals around US rates.