Market Performance: IT Stocks Drag the Index Lower
The stock market today saw clear pressure on frontline IT counters. Indian technology stocks slipped sharply in Friday’s trade as investor sentiment turned cautious across the sector.
The Nifty IT index dropped 1% to 38,600, tracking broad-based selling in IT heavyweights. With this move, the index is on course to end the week 0.2% lower, reflecting sustained nervousness in tech stocks.
Almost the entire index traded in the red, highlighting how quickly sentiment shifted within the sector.
Main News: Salary Hike Sparks Cost Concerns
The trigger for today’s decline came from Infosys, India’s second-largest IT company. The company raised entry-level salaries for freshers, a move that immediately sparked concerns around higher operating costs.
On Dalal Street, the reaction was swift. Investors worried that rising fresher salaries could compress margins across the IT sector, especially at a time when companies are already navigating a changing demand environment.
As a result, IT stocks faced selling pressure across the board during the session.
Company-Wise Snapshot: Share Price Movement
Nine out of ten stocks in the Nifty IT index were trading lower. The fall was led by mid-cap and large-cap names alike.
- Coforge share price declined 4%, emerging as the top loser in the IT pack
- Mphasis share price, Tech Mahindra share price, LTIMindtree share price, Tata Consultancy Services share price, and HCL Technologies share price slipped between 1% and 1.5%
- Infosys share price was down 0.5%, trading at ₹1,657 around 1:45 PM
The selling pressure remained broad-based, indicating sector-wide concerns rather than stock-specific triggers.
Why Infosys’ Salary Move Matters?
According to reports cited by Moneycontrol, Infosys has raised salaries for 2025 graduates up to ₹21 lakh. The company is also expected to launch an off-campus hiring drive for 2025 engineering and computer science graduates.
The company’s leadership has highlighted a strong push towards an AI-first approach across services. This shift makes upskilling existing employees and hiring specialised talent critical.
Hiring plans reportedly include:
- On-campus and off-campus recruitment
- Expanded roles for Specialist Programmers
While the hiring details are still awaited, the market reacted immediately to the potential rise in salary costs.
The Bigger Picture: A Changing Pay Landscape
For years, entry-level salaries in Indian IT remained largely unchanged, even as demand cycles shifted. That trend now appears to be turning.
With AI and specialised skill requirements gaining importance, companies are being pushed to offer higher compensation to attract the right talent.
A Moneycontrol analysis highlights how pay structures have evolved over time:
- Between FY12 and FY22, the median salary of IT CEOs jumped 835%, rising from ₹3.37 crore to ₹31.5 crore
- Over the same period, the median fresher salary increased just 45%, from ₹2.45 lakh to ₹3.55 lakh
This growing gap underscores why any sharp salary correction at the entry level draws immediate attention from the market.
Summary: Why IT Stocks Fell Today?
To sum it up, the weakness in Coforge, Mphasis, Tech Mahindra, LTIMindtree, Tata Consultancy Services, and HCL Technologies share price reflects rising caution in the stock market today.
- The Nifty IT index fell 1% to 38,600
- Coforge led losses with a 4% drop
- Other major IT stocks declined 1–1.5%
- Infosys’ decision to hike fresher salaries up to ₹21 lakh raised concerns around cost pressures
- Investors responded by trimming exposure across the IT sector
For now, the market remains focused on how rising talent costs could reshape profitability dynamics across India’s IT landscape.
Source: Livemint
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