IT stocks: TCS, Infosys, Persistent, Zensar Tech hit 52-week lows; decoding the crash

Shares of IT firms such as Infosys, Persistent Systems, Tata Elxsi, Tata Consultancy Services Ltd (TCS) and Zensar Technologies hit their fresh 52-week lows on Tuesday amid a correction in the broader market. The ongoing correction in IT stocks has shaved off 30% from the Nifty IT index in the first six months of 2026 following a 26% fall in 2025. The BSE IT index also slid nearly 30% this year. The IT sector is the worst performing in the Indian stock market this year. 

Tata Consultancy Services Ltd (TCS) and Infosys, the IT bellwethers have taken a major hit in the stock market on fears of AI-led disruption, US-Iran war and global IT firm Accenture's weak guidance. 

Shares of TCS and Infosys hit their fresh 52 week lows today. 

TCS 

TCS stock slipped 3% to a fresh low of Rs 2037.50 today against the previous close of Rs 2096.95. Market cap of the firm slipped to Rs 7.42 lakh crore.  The IT stock is down 36.42% this year. In terms of technicals, its RSI has fallen to 37.7, signalling the stock is trading neither near the oversold nor in the overbought zone. In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the Sensex component. 

Infosys 

Shares of Infosys slipped nearly 3% to a fresh low of Rs 1006 today against the previous close of Rs 1036.80. Market cap of the firm slipped to Rs 4.10 lakh crore.  The stock is down 38% this year. In terms of technicals, its RSI has fallen to 34.5, signalling the stock is trading neither near the oversold nor in the overbought zone. 

In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the Sensex component. 

Persistent Systems

Shares of Persistent Systems slipped to their fresh low today after the company announced the acquisition of Nagarro SE, a Germany-based IT services company on Monday, for a transaction value of EUR 1.27 billion, implying a valuation of roughly 1.3x EV/sales.

The stock is down over 13% in two sessions on the development. 

Shares of Persistent Systems slipped nearly 1% to a fresh low of Rs 4242.65 today against the previous close of Rs 4298.25. Market cap of the firm slipped to Rs 67,520 crore. The stock is down 32% this year. In terms of technicals, its RSI has fallen to 29.2, signalling the stock is trading in the oversold zone. 

In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in stock. 

Tata Elxsi

Shares of Tata Elxsi slipped nearly 3% to a fresh low of Rs 3868 today against the previous close of Rs 3982.85. Market cap of the Tata Group firm slipped to Rs 24,252 crore.  The stock is down 25.19% this year. In terms of technicals, its RSI has fallen to 37.2, signalling the stock is trading neither near the oversold nor in the overbought zone. 

In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the firm. 

Zensar Technologies 

Shares of Zensar Technologies slipped nearly 1% to a fresh low of Rs 426 today against the previous close of Rs 433.75. Market cap of the IT firm slipped to Rs 9783 crore. The stock is down 38% this year. In terms of technicals, its RSI has fallen to 33.4, signalling the stock is trading neither near the oversold nor in the overbought zone. 

In terms of simple moving averages, the stock is trading below all short term and long term ranges, signaling the negative trend in the firm. 

Decoding the IT sector crash 

Indian IT stocks have remained under pressure in 2026 as investors grapple with the twin challenges of rapid advances in generative artificial intelligence (AI) and a slowdown in technology spending by global clients. Concerns that AI could permanently disrupt the traditional IT services business model have triggered a sharp correction across the sector.

With each new AI product launch, investors worry that enterprises will require fewer outsourced technology professionals, potentially reducing demand for traditional IT services and putting pressure on revenue growth and profit margins.

The cautious spending environment in the United States and Europe has further weighed on sentiment. Many global clients continue to delay discretionary technology projects amid economic uncertainty, resulting in slower deal conversions and longer decision-making cycles for Indian IT companies.

Brokerages also remain cautious about the sector's long-term outlook. Analysts at Kotak Institutional Equities believe that while AI will create new opportunities such as legacy application modernization and enterprise AI integration, these revenue streams are unlikely to fully offset the decline in traditional IT services.

Infosys and Accenture have issued softer revenue forecasts and reported lower large-deal wins, signaling investors that the near-term growth environment remains muted.

Ambit Capital echoed similar concerns, stating that although IT services companies will play an important role in helping enterprises adopt AI, the productivity gains delivered by AI are likely to reduce overall spending on conventional technology services, limiting industry growth.