Nifty IT slides 3% as HCLTech sinks on FY27 cut

What happened in the market on April 22

Indian equities opened lower on April 22, 2026, with information technology stocks leading the declines after HCL Technologies’ quarterly results and guidance update. The S&P BSE Sensex was down 580.11 points at 78,693.22, while the NSE Nifty50 fell 142.60 points to 24,434.00 as of 9:42 am. The weakness was closely linked to the IT pack, which saw sharp selling across large-cap names. As the session progressed, the selloff remained concentrated rather than broad-based. At around 1:30 pm, the Sensex was trading 0.84% lower at 78,605.03 and the Nifty 50 was down 0.67% at 24,413.10.

Nifty IT leads the decline

The Nifty IT index slid around 3% during the session, and separate updates also cited moves of 2.88% and “over 3.5%” as the selloff intensified. The sector was already under pressure ahead of key Q4 earnings from companies such as Infosys and Tech Mahindra, and HCLTech’s numbers worsened sentiment. Reports described the move as an IT “correction mode” following weak commentary from HCLTech. The weakness spilled into broader indices due to the sector’s weight in benchmarks. Despite the drag, reports noted resilience in parts of the broader market as some domestic-facing sectors held up better.

HCLTech’s post-results shock

HCL Technologies was the biggest laggard among frontline IT stocks. Updates during the day put the stock down 8.6%, 8.68%, 8.9%, and “nearly 10%,” while other reports said it “tumbled over 10%,” highlighting the depth of selling at different points of the session. The immediate trigger was a Q4 performance that missed analyst expectations and a softer outlook.

HCLTech reported Q4 net profit of Rs 4,488 crore, up 4%, but the result still missed estimates cited in the coverage. Alongside the quarterly numbers, the company cut its FY27 growth guidance to 1% to 4% year-on-year in constant currency. Brokerages responded by cutting target prices and flagging weak near-term growth, according to the reporting.

Peer stocks fall ahead of their results

The selling was not limited to HCLTech. Early trade moves showed Tech Mahindra down 2.44%, Infosys down 2.41%, and Tata Consultancy Services down 1.35%. In another market update, Tech Mahindra was described as falling nearly 6% ahead of its results later in the day, while Infosys and TCS declined over 4% and 3%, respectively. The coverage also pointed to declines in Persistent Systems, reinforcing the view that the selloff was sector-wide.

The pressure on the IT pack reflected concerns mentioned in the reporting around demand visibility, slower decision-making, and a cautious outlook from clients. With multiple large IT companies either reporting or set to report, the session highlighted how quickly sentiment can shift on guidance signals.

Volatility rises as IT drags benchmarks

Risk indicators also moved higher. India VIX rose over 3%, signalling higher market volatility during the selloff. While the headline indices were down, one report characterised the weakness as “far from broad-based,” with IT doing the heavy lifting on the downside even as several other pockets of the market remained resilient.

This divergence mattered for investors watching whether the decline was an index-wide risk-off move or a sector-led adjustment. On April 22, the key feature was the outsized impact of IT.

Key levels traders were watching

Alongside the earnings-led selloff, the day’s market notes also highlighted near-term levels for the benchmarks. For the Nifty, resistance was flagged at 24,700 to 24,800 in case of a further rally. On the downside, support was identified at 24,400 to 24,350 in case of profit booking. For the Bank Nifty, 56,700 was mentioned as a support, while immediate resistance was seen at 57,700 to 58,000.

These levels were presented as reference points as traders navigated a session influenced by earnings reactions and global cues.

Bigger picture: why IT sentiment remains fragile

The April 22 selloff landed in a broader context of sustained weakness in IT stocks in 2026. Data cited in earlier coverage showed the Nifty IT index down around 25% year-to-date in 2026, compared with the Nifty50 down nearly 10% over the same period. Another February market update said the Nifty IT index had tanked 3.5% to a 52-week low of 30,417.75, taking its month-to-date decline then to 20%.

That same update said the IT pack had lost Rs 5.05 lakh crore in market capitalisation as of the previous day’s close, based on Capitaline data. The reports also tied the sector’s drawdown to persistent fears of AI-driven disruption and global tech volatility. Those themes resurfaced as investors reassessed guidance and near-term growth visibility.

Snapshot of the day’s key facts

Conclusion

April 22’s market action underscored how sharply IT stocks can react to a combination of earnings misses and weaker growth guidance. HCLTech’s drop rippled through peers and pulled the Nifty IT index lower, weighing on both the Sensex and Nifty50 while volatility indicators also rose. With more IT results due, the next set of company updates is likely to remain a key driver for sector sentiment in the near term.