TCS, Mphasis, Infosys, Persistent Systems shares fall, Nifty IT worst sectoral performer; here's why
TCS, the largest software exporter, fell 1.8 per cent to Rs 2,149.30. Infosys, the second-largest IT player, declined 1.62 per cent to Rs 1,075.20. Persistent System slipped 1.51 per cent to Rs 5,051.40.
- Jul 15, 2026,
- Updated Jul 15, 2026 9:43 AM IST
Tata Consultancy Services Ltd (TCS), Persistent Systems Ltd, Infosys Ltd, Tech Mahindra Ltd and Wipro Ltd led losses on Nifty IT on Wednesday. All 10 index constituents declined after as concerns over client demand intensified after IBM's preliminary second quarter results, fuelling fears that near-term earnings expectations could come under pressure.
TCS, the largest software exporter, fell 1.8 per cent to Rs 2,149.30. Infosys, the second-largest IT player, declined 1.62 per cent to Rs 1,075.20. Persistent System slipped 1.51 per cent to Rs 5,051.40. Wipro and Mphasis declined 1 per cent each. LTM, Tech Mahindra, Oracle Financial Services, Coforge and HCL Tech also fell up to 1 per cent.
IT stocks tracked a 26 per cent plunge in IBM shares overnight, the biggest intraday loss since at least January 3, 1968. Devarsh Vakil, Head of Prime Research at HDFC Securities said IBM warned of a weaker-than-expected software and infrastructure profits. "The miss reignited concerns over near-term AI monetisation, rippling through the broader tech sector and acting as the single biggest drag on the Dow Jones," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
In a letter to shareholders, IBM Chief Executive Officer, Arvind Krishna said his company had anticipated Infrastructure vertical revenue to decline in low-single digits for the year, beginning the June quarter. But what played out was worse than his expectations, driven by a shortfall in its Z performance and the associated software stack, primarily in Transaction Processing.
The IBM CEO said clients shifted their quarterly capex spends toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. The dynamic impacted client buying patterns, he said.
"While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization. In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter," IBM noted.
Krishna further said the conditions required perfect execution but his company faltered for the quarter. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall," he said.
IBM reported $17.2 billion in revenue for the quarter, up 1 per cent. Its Consulting revenue was flat, up 1 percent at constant currency (CC) terms. Software revenue grew 5 per cent. Infrastructure revenue fell 7 per cent.
"We are still working to close our financial reporting for the quarter and our final results could be slightly different," Krishna told IBM investors.
Tata Consultancy Services Ltd (TCS), Persistent Systems Ltd, Infosys Ltd, Tech Mahindra Ltd and Wipro Ltd led losses on Nifty IT on Wednesday. All 10 index constituents declined after as concerns over client demand intensified after IBM's preliminary second quarter results, fuelling fears that near-term earnings expectations could come under pressure.
TCS, the largest software exporter, fell 1.8 per cent to Rs 2,149.30. Infosys, the second-largest IT player, declined 1.62 per cent to Rs 1,075.20. Persistent System slipped 1.51 per cent to Rs 5,051.40. Wipro and Mphasis declined 1 per cent each. LTM, Tech Mahindra, Oracle Financial Services, Coforge and HCL Tech also fell up to 1 per cent.
IT stocks tracked a 26 per cent plunge in IBM shares overnight, the biggest intraday loss since at least January 3, 1968. Devarsh Vakil, Head of Prime Research at HDFC Securities said IBM warned of a weaker-than-expected software and infrastructure profits. "The miss reignited concerns over near-term AI monetisation, rippling through the broader tech sector and acting as the single biggest drag on the Dow Jones," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
In a letter to shareholders, IBM Chief Executive Officer, Arvind Krishna said his company had anticipated Infrastructure vertical revenue to decline in low-single digits for the year, beginning the June quarter. But what played out was worse than his expectations, driven by a shortfall in its Z performance and the associated software stack, primarily in Transaction Processing.
The IBM CEO said clients shifted their quarterly capex spends toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases. The dynamic impacted client buying patterns, he said.
"While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization. In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the quarter," IBM noted.
Krishna further said the conditions required perfect execution but his company faltered for the quarter. "We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall," he said.
IBM reported $17.2 billion in revenue for the quarter, up 1 per cent. Its Consulting revenue was flat, up 1 percent at constant currency (CC) terms. Software revenue grew 5 per cent. Infrastructure revenue fell 7 per cent.
"We are still working to close our financial reporting for the quarter and our final results could be slightly different," Krishna told IBM investors.