Infosys, HCL Tech, TCS, Tech Mahindra: Why IT stocks fell amid market rally today
Infosys (1.8%), HCL Technologies (0.74%), TCS 0.40% and Tech Mahindra (1.06%) were among the top Sensex losers in the current session.
- Feb 23, 2026,
- Updated Feb 23, 2026 4:46 PM IST
IT stocks were the top losers on Monday, bucking the trend in Sensex and Nifty. Infosys (1.8%), HCL Technologies (0.74%), TCS (0.40%) and Tech Mahindra (1.06%) were among the top Sensex losers in the current session. Analysts attributed today's correction to AI-driven disruption in the IT sector.
Global brokerage Jefferies pared its price targets by up to 33 per cent on Indian IT stocks.
Artificial intelligence is likely to structurally change IT business mix towards consulting and implementation while shrinking managed services. This, the brokerage said, would not only increase cyclicality but also require a change in talent and operating model, thus adding risks.
The weakness in the IT stocks led the BSE IT index to close 424 points lower at 30,627 today. On similar lines, Nifty IT index crashed 453 points or 1.42% to 31,550.
On the BSE IT index, 63 Moons Technologies stock was the top loser slipping (8.83%), IRIS RegTech Solutions Ltd (6.31%), Network People Services Technologies (6.31%), Onward Technologies Ltd(5.79%) and Latent View (4.22%). Global growth concerns were mirrored in the European stocks with FTSE trading flat at 10,682 and DAX fell 72 pts to 25,178.
Indian IT firms earn over 50% of their revenue including the US, turned sentiments around the IT stocks weak today.
Vinod Nair, Head of Research, Geojit Investments said, "Sectorally, the IT index faced pressure from unresolved concerns over AI-driven disruption."
Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth said, " Indian IT stocks corrected close to 2%, reflecting ongoing concerns over AI-driven disruption to conventional outsourcing and service models. The uncertainty surrounding the pace of technological transition and its impact on earnings visibility continued to keep investor sentiment subdued within the sector."
Meanwhile, Sensex closed 480 pts higher at 83,294 and Nifty added 142 points to 25,713. The stock market ended higher for the second straight session today.
IT stocks were the top losers on Monday, bucking the trend in Sensex and Nifty. Infosys (1.8%), HCL Technologies (0.74%), TCS (0.40%) and Tech Mahindra (1.06%) were among the top Sensex losers in the current session. Analysts attributed today's correction to AI-driven disruption in the IT sector.
Global brokerage Jefferies pared its price targets by up to 33 per cent on Indian IT stocks.
Artificial intelligence is likely to structurally change IT business mix towards consulting and implementation while shrinking managed services. This, the brokerage said, would not only increase cyclicality but also require a change in talent and operating model, thus adding risks.
The weakness in the IT stocks led the BSE IT index to close 424 points lower at 30,627 today. On similar lines, Nifty IT index crashed 453 points or 1.42% to 31,550.
On the BSE IT index, 63 Moons Technologies stock was the top loser slipping (8.83%), IRIS RegTech Solutions Ltd (6.31%), Network People Services Technologies (6.31%), Onward Technologies Ltd(5.79%) and Latent View (4.22%). Global growth concerns were mirrored in the European stocks with FTSE trading flat at 10,682 and DAX fell 72 pts to 25,178.
Indian IT firms earn over 50% of their revenue including the US, turned sentiments around the IT stocks weak today.
Vinod Nair, Head of Research, Geojit Investments said, "Sectorally, the IT index faced pressure from unresolved concerns over AI-driven disruption."
Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth said, " Indian IT stocks corrected close to 2%, reflecting ongoing concerns over AI-driven disruption to conventional outsourcing and service models. The uncertainty surrounding the pace of technological transition and its impact on earnings visibility continued to keep investor sentiment subdued within the sector."
Meanwhile, Sensex closed 480 pts higher at 83,294 and Nifty added 142 points to 25,713. The stock market ended higher for the second straight session today.