PKN Live | Indian IT stocks witnessed a sharp selloff on February 4, dragging the Nifty IT index down by more than 6 percent in early trade. Heavyweights such as TCS, Infosys, Wipro, Tech Mahindra, Persistent Systems and Coforge recorded steep losses as global concerns over artificial intelligence disrupted investor sentiment.
TCS Share Price and Infosys Share Lead Losses
The Infosys share price dropped over 7 percent to around Rs 1,538, while TCS share price declined nearly 6 percent. Other major IT stocks including LTI Mindtree, Persistent Systems and Coforge also fell close to 7 percent each. Mphasis and Tech Mahindra were down more than 6 percent, while Wipro slipped around 4 percent.
The heavy fall in IT stocks made the Nifty IT index the worst performing sector on Dalal Street. Even Info Edge, parent company of Naukri.com, lost around 6 percent due to concerns over job demand in the IT industry.
Why IT Stocks Are Falling Today
Investors are asking why IT stocks are down today. The major trigger came from a global tech selloff after AI firm Anthropic launched new capabilities for its Claude AI chatbot. The tool can automate legal, marketing, sales and data tasks, raising fears that traditional IT services could face disruption.
Wall Street reacted negatively to the development. Shares of Nvidia and Microsoft fell nearly 3 percent each, while Salesforce and Adobe dropped around 7 percent. The Nasdaq ended 1.43 percent lower, setting weak cues for Indian markets. Movement in Gift Nifty today live also indicated pressure on domestic indices.
Analysts Cautious on IT Sector
Market experts believe high valuations and AI-driven competition are hurting sentiment. According to VK Vijayakumar of Geojit Investments, the US tech selloff will continue to impact Indian markets as there is little fundamental support for a strong rally in the IT space.
Traders are closely tracking TCS news, upcoming earnings and global trends to understand whether the fall in IT stocks is temporary or the start of a deeper correction.
Outlook for Nifty IT Index
The near-term movement of the Nifty IT index will depend on global technology earnings and clarity on how AI tools affect outsourcing demand. Until confidence returns, volatility in TCS share, Infosys share and other IT majors is likely to remain high.