Indian IT Stocks Slide for Third Day; Coforge, TCS, and Infosys See Declines

Market Performance: Nifty IT Index Dips Sharply

Indian IT stocks continued their downward trend for the third consecutive session on February 6, 2026. Concerns over the accelerating impact of artificial intelligence on traditional software services drove investors to sell shares across the sector.

• Nifty IT index: fell ~3% to 35,457.80 at 9:45 am on Friday.
• Sector performance: worst performing index in the market today, heading for the largest weekly loss in over four months.

The sell-off reflects rising uncertainty in the IT services space as automation tools and AI-led solutions gain momentum globally.

IT Stocks in Focus

Shares of major IT firms saw noticeable declines:

• Coforge: down over 4%
• Persistent Systems & LTIMindtree: down around 3% each
• Mphasis & Tech Mahindra: down more than 2%
• TCS & Infosys: down nearly 2% each
• Wipro & HCLTech: fell approximately 1%

The declines were broad-based, impacting both mid-cap and heavyweight IT stocks.

Why IT Stocks Are Falling?

The drop comes amid growing concerns that AI-driven solutions could reshape demand for traditional IT services. Last week, Anthropic launched new plug-ins for its Claude AI Cowork agent, which can automate tasks across legal, sales, marketing, and data analysis.

This development has highlighted potential competition for software and IT service providers:

• Automation could reduce reliance on traditional manpower-heavy IT projects.
• Core application services, which make up 40–70% of revenue for many firms, may face pressure.
• Investors are weighing the implications of AI-led disruption on long-standing revenue streams.

While the fundamentals of the sector remain intact, the market is adjusting to the possibility of AI reshaping IT services in the near future.

Company Snapshot

Coforge

Coforge shares were the hardest hit among mid-cap IT names, dropping over 4% amid sector-wide selling.

LTIMindtree & Persistent Systems

Both companies fell around 3%, reflecting investor caution about the impact of AI on software services.

Tech Mahindra & Mphasis

These firms saw declines of more than 2%, mirroring broader sentiment across mid-cap IT names.

TCS & Infosys

Heavyweights TCS and Infosys dropped nearly 2%, showing that even established companies are not immune to sector-wide pressures.

Wipro & HCLTech

Smaller declines of around 1% indicated selective selling in these names.

Summary

The Indian IT sector experienced a third consecutive day of losses on February 6, 2026, driven by AI-related concerns. The Nifty IT index fell nearly 3%, with Coforge, LTIMindtree, TCS, and Infosys among the worst performers. Investors are weighing the broader implications of AI automation on revenue and services, making IT stocks more volatile in the near term.

The market trend underscores that even large, established IT firms are facing new challenges as technological advancements reshape service delivery and demand patterns.

Source: Moneycontrol