Nifty IT slides 29% in 2026 as TCS hits lows

What triggered the latest IT sell-off

India’s IT services stocks came under sharp selling pressure, tracking a global technology decline and rising investor anxiety around artificial intelligence (AI) disruption. The latest fall added to an already weak run for the sector, with the Nifty IT index down 29% in calendar year 2026. Market participants cited a mix of factors including global technology weakness, concerns that AI could reshape traditional outsourcing demand, and company-specific challenges across large and mid-cap names.

In the session described in the data, Infosys led the fall with a drop of more than 8%. Other major IT names including Mphasis, TCS, Tech Mahindra, LTIMindtree, HCLTech and Persistent Systems recorded losses of around 5-6%. The breadth of the decline reinforced the view that the correction is sector-wide rather than limited to a few companies.

How the pressure showed up in key stocks

Tata Consultancy Services (TCS) touched a multi-year low of ₹2,144.10, down 2.5% on the NSE in intra-day trade. The stock was cited as being at its lowest level since August 2020. Separately reported levels put TCS’s 52-week low at ₹2,143.30 and 52-week high at ₹3,538.00.

On a year-to-date basis in calendar year 2026, TCS was reported down about 33% to 33.40%, compared with an 11.5% to 11.56% decline in the Nifty 50. Over longer periods, TCS was also reported at -11.26% for one month, -24.78% over six months, and -33.10% over one year. One data point also referenced five-year returns of -23.83%.

Wipro and Infosys were also described as trading close to, or at, 52-week lows amid the same set of concerns. In one cited session, shares of Infosys, Wipro and TCS fell to 52-week low levels of ₹1,265, ₹199.50 and ₹2,561.95, respectively, in intraday trade, with Wipro later reported at ₹200.15.

Nifty IT and the broader tape

The sector’s sell-off was positioned as an extension of a longer correction, with a separate “snapshot of the decline” listing: Nifty IT Index -15%, Wipro -25%, Infosys -25%, TCS -17%, Cognizant -24%, HCL -17%, Accenture -25%, and Capgemini -30%. The timeframe for this snapshot was not specified in the source text, but the numbers were presented as a comparative view of the drawdown across major global and Indian IT names.

One key fact highlighted was that TCS’s market value fell below ₹10 lakh crore. That datapoint underlined the scale of the wealth erosion in large-cap IT during the correction.

Brokerage actions: downgrades, target cuts, and valuation concerns

Brokerages turned more cautious as the correction deepened. Nirmal Bang issued a series of downgrades across large- and mid-cap IT stocks, with most names moved into the ‘Sell’ category. Among large caps, it downgraded TCS to ‘Sell’ from ‘Buy’ and cut the target price to ₹1,693 from ₹3,046. The note also reduced the valuation multiple to 12x FY28E EPS from 19x earlier.

Separately, UBS revised target prices for major IT companies, citing soft Q4 revenue growth and margin pressures. The target revisions listed were: Infosys to ₹2,100 from ₹1,450 (Buy), TCS to ₹4,250 from ₹4,650 (Neutral), HCL Tech to ₹2,030 from ₹1,350 (Neutral), and Wipro to ₹315 from ₹430 (Sell). The same context also flagged anticipated sequential declines for Infosys and Wipro due to deal ramp-downs at TCS, HCL Technologies, and Infosys, alongside client spending uncertainty.

Jefferies pointed to valuation risk as well. It noted that even after Accenture’s 18% decline, the top five Indian IT companies still trade at roughly a 70% premium to Accenture, leaving room for further downside in valuations. Another Jefferies datapoint cited a cut in IT sector weight in its India portfolio from 9.7% to 5.6%, linked to concerns around competitive moat erosion.

AI disruption and demand uncertainty as the core narrative

A repeated theme across the data was the market’s concern that AI could commoditize parts of traditional IT services. One reference highlighted that new AI tools from Anthropic aimed at corporate legal teams added to worries that traditional IT offerings may face pricing pressure. Some analysts also linked weak sentiment to elevated bond yields and global demand uncertainty.

From a technical perspective, Infosys, Wipro and TCS were described as being in the oversold zone and trading below multiple simple moving averages, including the 5-day through 200-day SMAs. While technical indicators do not change fundamentals, the description reflected the intensity and persistence of the selling.

Q4FY26 takeaways: divergence within the sector

The Q4FY26 commentary in the provided data suggested that the results season reinforced a split between Tier-1 and select Tier-2 players. Execution-led growth stories were described as continuing to outperform, even as the macro backdrop stayed uncertain. At the same time, near-term growth visibility was described as uneven across players, despite valuations becoming “relatively more supportive” after a prolonged correction phase.

This combination of uneven growth and valuation debate has made brokerage positioning more cautious, with multiple houses lowering targets or downgrading ratings across the sector.

Stock moves and notable levels mentioned

In one described 24-hour window, the sector showed mixed moves even as sentiment stayed fragile. HCL Technologies gained 1.87% to close at ₹1,358.60, Infosys edged up 0.07% to ₹1,256.80, and TCS slipped 0.28% to ₹2,383.80. These mixed closes sat alongside the broader negative trend cited for one-year returns, including TCS down 33.10%.

A separate reference, attributed to a LinkedIn post on the topic, described the landscape as “in transition” and cited that TCS was down 32% and Wipro down 25% as of March 2026. The same post also mentioned a figure of around $115 billion in connection with major IT names, presented without further detail.

Key figures at a glance

Brokerage targets and ratings mentioned

Why this matters for investors tracking Indian IT

The data points to three linked issues investors are weighing: weaker near-term growth visibility, concerns about AI-led disruption to outsourcing models, and the risk of further valuation compression. The Nifty IT index’s 29% decline in 2026 highlights the scale of the reset underway.

At the company level, the move of key names like TCS toward multi-year lows and the reported dip in market value below ₹10 lakh crore add to the perception that this is not just a short-term reaction. Broker actions from Nirmal Bang, UBS, and Jefferies show that the market is re-pricing both earnings confidence and valuation comfort.

Conclusion

Indian IT stocks extended their decline as global tech weakness and AI-related concerns pushed frontline counters toward 52-week lows and prompted fresh brokerage downgrades and target changes. With sector performance in 2026 already deeply negative, investors will watch for the next set of company updates, including TCS’s board meeting scheduled for April 9, 2026, to approve FY26 results and a final dividend.