Nifty IT drops 2% on June 8 as Wipro slides 6%

Nifty IT extends losses as sentiment stays weak

The Nifty IT Index was among the worst-performing sectoral indices on Monday, 8 June, falling about 2%. The decline was led by sharp losses in heavyweight IT stocks, as investor sentiment remained subdued amid global macroeconomic uncertainty. Market participants also pointed to a broader retreat in global technology and AI-linked shares, which triggered fresh profit-booking in the sector. Even as the headline Nifty 50 fell about 1% during the session, the IT pack underperformed.

In morning trade, the Nifty IT index dropped 1.8% to 28,500, taking its cumulative decline to 8.4% over four sessions. The day’s move also marked the index’s fourth consecutive session of decline, according to the market snapshot referenced in the update.

Wipro leads the fall; large caps drag the index

Wipro was the biggest drag on the index in Monday’s trade. One update showed Wipro tumbling 6.46% to ₹185.55 after strong selling pressure. Another snapshot during the session showed Wipro down 5.5% to ₹187.4, also making it the top loser on the Nifty 50 at the time.

Other frontline names were weaker as well. TCS slipped 1.47% to ₹2,166.50 in one update, while another snapshot showed TCS down 1.9% to ₹2,156.7. Infosys remained subdued in one quote, down 0.11% to ₹1,196.20, while a separate market read showed Infosys down 1.3% during the session. HCL Technologies and Tech Mahindra were also seen trading lower by about 1% each in one of the trading updates.

Pockets of strength: Tech Mahindra, Mphasis, Persistent rise

Despite broad weakness, a few constituents posted gains and limited the overall fall in the Nifty IT index. Tech Mahindra was cited as the top gainer in one snapshot, rising 1.25% to ₹1,502. Mphasis gained 0.86% to ₹2,350, while Persistent Systems advanced 0.33% to ₹5,055.

LTIMindtree and Oracle Financial Services Software (OFSS) also posted modest gains of 0.10% and 0.09%, respectively. These advances stood out against the selling pressure in other large and mid-tier names.

What drove the selloff: global tech profit-booking and AI worries

The sector’s correction has been linked to a global selloff in technology and AI-linked stocks, with investors booking profits in recent winners. Separately, concerns have persisted about how artificial intelligence could disrupt traditional IT services and affect growth expectations.

The news flow also pointed to muted client spending and slowing growth expectations as reasons investors continued cutting exposure to the sector. In one instance, the immediate trigger for a renewed bout of anxiety was linked to a new AI offering from Anthropic, the company known for the Claude chatbot, which further clouded sentiment around near-term demand visibility.

June 4 context: sharp one-day fall and a losing streak

The pressure in IT stocks was also visible earlier in the month. On Thursday, 4 June, TCS fell nearly 1% to ₹2,216 on the NSE after a steep decline in the previous session, described as its worst single-day fall of 9% since early 2020. Infosys declined 1.21% to ₹1,207.80, while Wipro dropped over 0.50% to ₹204.

Mid-tier names were not spared. Coforge declined 2.1% to ₹1,391 and Mphasis slipped 1.9% to ₹2,245. The Nifty IT index fell over 0.53% to 29,274 that day, extending its losing streak. The index had tumbled nearly 6% on the prior session, its sharpest one-day decline since at least 2020, with every constituent ending in the red and losses ranging between 3% and 9%.

Deeper correction markers: below peak, multi-year lows, CY26 underperformance

In another session described in the updates, the Nifty IT index fell over 2% and sharply underperformed a broader market that gained 0.8%. The same update said the selloff had dragged the Nifty IT index more than 40% below its record peak touched in December 2024.

Separately, the index was reported to have slipped to multi-year lows during bouts of selling. One report said the Nifty IT index hit a two-year low of 30,516.8, the lowest since November 2023, and fell as much as 3.28% on the day. The index was also described as hovering near a three-year low in early trade in another update.

For the year-to-date picture, one data point stated the Nifty IT index had lost over 19% in CY26, compared with a nearly 2% dip in the Nifty 50 over the same period. Another note said Wipro, Coforge, LTIMindtree, Persistent Systems, Infosys and TCS were among the top losers, each down over 20%.

Key numbers at a glance

Market impact: how the selloff showed up in prices

The immediate impact was visible in sharp single-day declines in key index heavyweights, with Wipro highlighted as the biggest casualty on June 8. The broader index damage was also amplified by multiple consecutive down sessions, with a cited four-session fall of 8.4%.

At the stock level, the updates showed pressure across both large-cap and mid-tier IT names, including TCS, Infosys, HCL Technologies, Coforge and Persistent Systems on different days. Even when select counters such as Tech Mahindra, Mphasis, Persistent, LTIMindtree and OFSS posted small gains in one snapshot, the index remained under pressure due to the weight of larger declines elsewhere.

Analysis: why investors are recalibrating the IT trade

The sequence of reports points to two overlapping forces. First is a global risk-off move in technology and AI-linked shares, where profit-booking in heavily owned names can quickly spill over into Indian IT. Second is a more fundamental worry: whether AI-led disruption changes spending patterns and the value of traditional services that have historically supported growth expectations for large IT exporters.

The sharpest selloffs referenced, including a near-6% index fall in a single day and a week where the sector ended down more than 8%, suggest positioning and sentiment were stretched. The note that the index was more than 40% below its December 2024 peak underscores how quickly the market has repriced the sector during this phase.

Conclusion: pressure persists as investors track global tech cues

Nifty IT’s June 8 decline extended a multi-session slide, led by heavy selling in Wipro and weakness across other frontline names, even as a few stocks managed modest gains. The near-term direction for the sector remains closely tied to global technology sentiment and how investors interpret AI-driven shifts in client spending and industry growth expectations. Some updates also noted intermittent rebounds, including a separate mention of the index surging nearly 3% on improved sentiment and AI optimism, indicating that moves can remain sharp in both directions when positioning changes.