Nifty IT tumbles 3% as HCLTech flags FY27 slowdown

IT stocks lead the market’s early decline

Indian IT stocks were hit by heavy selling on April 24, 2026, pushing the Nifty IT index down more than 3% and making it the worst-performing sector at the start of trade. The weakness in technology counters also weighed on headline indices as risk sentiment turned cautious. In early trade, reports also pointed to the Sensex falling more than 700 points and the Nifty slipping below 24,000, with IT weakness and a spike in crude oil adding to pressure. The sell-off was broad-based across large-cap and mid-cap IT names, indicating that investors were reacting to sector-wide signals rather than a single stock move.

HCLTech’s Q4 update becomes the immediate trigger

The sharp move in the sector was catalysed by HCLTech’s March-quarter earnings update and a cautious outlook for FY27. Around 9:18 am, HCLTech was the biggest hit among IT stocks, plunging 9.1% to Rs 1,310.05. By 9:44 am on the BSE, HCLTech was down 8.94% at Rs 1,312.70, keeping it at the centre of the day’s sectoral pressure. The company guided for revenue growth of 1%-4% in constant currency for the new financial year, below analyst expectations of around 3%-5%. Management cited softer discretionary spending by clients, delayed project decisions and two client-specific ramp-downs.

Key numbers: revenue, profit, and bookings

HCLTech reported March-quarter revenue of Rs 33,981 crore and net profit of Rs 4,488 crore, with both figures missing analyst estimates, as per the article data. New bookings fell to $1.94 billion, described as the lowest in three quarters, raising concerns about near-term growth momentum. For investors, the combination of a miss versus expectations and softer forward guidance mattered more than whether some parts of the quarter were stable. The market reaction underscored how sensitive IT valuations remain to changes in demand commentary, especially when the first large company of the earnings cycle sets the tone.

Heavyweights fall in tandem across the IT pack

The pressure was visible across other sector leaders as well. At about 9:44 am, Infosys fell 2.49% to Rs 1,280.40, while Tata Consultancy Services slipped 1.51% to Rs 2,571.15. Tech Mahindra dropped 2.57% to Rs 1,461.75 at the same timestamp, reflecting broad risk-off selling within the sector. In a separate early snapshot cited in the article, Infosys was down 2.5% to Rs 1,280.85, TCS slipped 1.7% to Rs 2,565, and Tech Mahindra fell 3.8% to Rs 1,443.30.

Why one company’s guidance hits the whole sector

Markets often treat the first major IT earnings release as a read-through for peers. When a large exporter highlights delayed client decisions and softer discretionary spending, investors tend to reassess the outlook for other companies with similar exposure to the US and Europe. The article also noted that analysts had already flagged FY27 guidance from top IT firms as the key trigger this earnings season. Brokerage commentary referenced in the article highlighted risks from slower client spending, macro uncertainty, and the impact of AI-led cost optimisation on traditional outsourcing demand.

Broader market context: oil, Fed expectations, and FII selling

The day’s IT-led drag played out alongside wider risk factors. One of the market updates cited crude oil prices above $106 as a continuing headwind for equities. The market was also positioned ahead of an upcoming US Federal Reserve policy meeting, with expectations that the Fed may not cut interest rates immediately. Separately, the article pointed to sustained foreign institutional investor selling as a continuing pressure point, especially for large-cap stocks.

Technical levels also featured in market commentary included in the article. It said that until the Nifty 50 reclaims and sustains above 24,600, a cautious bias is likely to persist. It also flagged immediate support around 24,000-23,900 and suggested that below 24,600 the market could remain range-bound.

Sector weakness extends to midcaps and breadth signals

The IT sell-off was not limited to index heavyweights. Midcap IT counters also saw sharp cuts, with Coforge cited as plunging over 5% and emerging as the top loser on the BSE Midcap index in the reported session. Another market snapshot included in the article (from an earlier instance of IT weakness) showed Sensex down 93 points (0.1%) to 75,410 and Nifty down 32 points to 23,377, while market breadth stayed positive with 1,632 stocks advancing and 1,363 declining. This mix of positive breadth and sharp IT declines supports the article’s framing that the selling was sector-specific rather than panic-driven.

Volatility, AI disruption concerns, and multi-day drawdowns

Even as IT stocks weakened, the article noted India VIX falling around 3%, pointing to cooling headline volatility despite sector-specific selling. Beyond earnings and macro cues, the article also referenced renewed concerns about AI disruption. It cited a separate trigger where Anthropic highlighted the potential of its Claude Code tool to modernise legacy systems built on COBOL, which added to anxiety around traditional IT services demand.

The article also carried longer-duration context on sector performance, stating the Nifty IT index has fallen 21% in the last year and 17% in the last month (as per exchange data referenced). It added that the Nifty IT index has plunged more than 13% so far this year, against a 2.3% upmove in the Bank Nifty, while the Nifty has fallen 1.7% over the same period. Another data point cited was overseas investors dumping IT shares worth almost Rs 75,000 crore in 2025, described as the highest selling across sectors that year.

What investors will watch next

The next major trigger highlighted in the article is earnings commentary from Infosys, TCS and other sector majors in the coming days. The market’s reaction indicates that guidance and demand commentary are currently driving price action more than reported quarterly profits. Separately, the path of crude oil prices, ongoing FII flows, and signals around US rates remain key variables shaping risk appetite.

Conclusion

The sharp fall in Indian IT stocks was driven by HCLTech’s Q4 miss versus expectations, its FY27 constant-currency revenue growth guidance of 1%-4%, and broader uncertainty around global demand. With the Nifty IT index sliding to multi-year low territory in the reported sessions, investors are likely to stay focused on upcoming peer commentary and macro signals, including the Fed policy meeting and persistent FII selling.