Infosys, TCS, Wipro, HCL Tech, TechM: IT stocks stare at selloff as ADRs tumble

IT stocks such as Infosys Ltd, Tata Consultancy Services Ltd (TCS), Wipro Ltd, HCL Technologies Ltd and Tech Mahindra Ltd are in focus on Tuesday morning after American depositary receipts (ADRs) of Indian IT companies fell overnight on broader Wall Street selloff and fresh AI disruptions by Anthropic. Claude in a blog said tools like Claude Code can automate the exploration and analysis phases that consume most of the effort in COBOL modernisation. COBOL handles an estimated 95 per cent of ATM transactions in the US. Besides, on February 20, Anthropic announced a new tool that scans codebases for security vulnerabilities and suggests targeted software patches for human review has been hitting stocks across the cybersecurity industry. IBM shares plunged 13.15 per cent to $223.35.

Infosys ADRs plunged 5.05 per cent to settle at $13.91 on NYSE. The ADR though recovered a bit in after hour trading and was up 0.72 per cent at $14.01. Wipro ADRs fell 3.10 per cent to $2.19.

US markets settled lower overnight. Dow Jones settled 1.66 per cent lower at 48,804.06. S&P500 fell 1.04 per cent to 6,837.75. Nasdaq Composite declined 1.13 per cent to 22,627.27.

"The weakness stems from renewed tariff-related uncertainty, coupled with lingering concerns around AI-led disruptions affecting global technology stocks. Investor sentiment remains guarded following President Donald Trump’s rollout of a 10–15 per cent global tariff framework, effective today. While recent adjustments under the US–India trade arrangement provide some clarity, the move introduces near-term uncertainty for export-oriented sectors and may keep risk appetite measured at the start of the session," said Ponmudi R, CEO of Enrich Money.

He said traders should also brace for typical Nifty expiry-day volatility, with choppy price action likely until positions roll over and clearer intraday direction emerges. While the broader sentiment remains constructive on the back of domestic resilience, the market is expected to stay range-bound with elevated volatility unless fresh triggers provide decisive momentum, he said.