The stock market today saw another rough session for IT stocks. From TCS and Infosys to Wipro share price, the pressure was visible across the board.
The Nifty IT index has now entered its sharpest correction since the 2008 financial crisis. That’s not a small statement. The numbers clearly show how deep this fall has been.
As a Stock Market Analyst at Samco Securities, what stands out isn’t just the fall. It’s the speed, the consistency, and the reason behind it — artificial intelligence disrupting the traditional IT model.
Let’s break it down.
Market Performance: Nifty IT Index Cracks 32% from Peak
The IT pack continued its losing streak on February 16, marking the fourth straight session of decline.
Here’s what the data shows:
- Nifty IT index slipped 1.1% intraday
- Down 9.5% in just four sessions
- Now 32% below its record peak
- Record high: 41,530.3 (December 2025)
This is the worst drawdown since the 2008 Lehman crisis.
The correction has been ongoing:
- Fell 13% in 2025
- Down another 15% so far in 2026
That’s a prolonged, two-year correction. Not a one-day panic. Not a knee-jerk reaction.
It reflects a clear shift in market mood.
IT Stocks Today: From TCS to Infosys, Pressure Everywhere
The weakness wasn’t limited to one or two counters. It was broad-based.
In today’s session:
- Infosys declined over 2%
- Tech Mahindra slipped more than 1%
- Wipro fell close to 1%
- LTIMindtree also down around 1%
- Tata Consultancy Services traded in the red
- HCL Technologies saw modest losses
- Mphasis was lower
A few names resisted the fall:
But the broader tone remained negative.
From TCS, Infosys to Wipro share price, most heavyweights were under sustained selling pressure.
Why Are IT Stocks Falling?
The answer is simple. But the impact is big.
1. Artificial Intelligence Disruption Fears
Investor concern intensified after a new legal-focused AI tool was launched by Anthropic for its Claude chatbot.
The core fear is this:
- AI can automate coding faster
- AI tools can lower entry barriers
- Enterprises may reduce reliance on outsourcing
- Competitive intensity could rise
Indian IT companies traditionally thrived on large outsourcing contracts and manpower-driven billing models.
If AI reduces the need for large teams, the entire outsourcing framework faces pressure.
This is not about short-term quarterly earnings.
This is about business model risk.
Markets are reacting to that possibility.
2. US Macro Signals Adding Pressure
There’s another layer to this.
In the US:
- Job growth surprised on the upside in January
- Unemployment rate edged down to 4.3%
A stronger labor market increases the possibility that the Federal Reserve may keep interest rates unchanged for longer while assessing inflation trends.
Technology stocks are rate-sensitive globally.
So when rate-cut expectations get delayed, IT shares feel the impact.
That global cue added to domestic pressure in the stock market today.
Structural Shift in the IT Sector
The IT industry is clearly undergoing change.
What we are seeing:
- Increased AI adoption
- Workforce rationalisation
- Productivity improvements
- Valuation re-adjustments
Over time, technology cycles have reshaped software spending patterns.
Here’s a key historical shift:
- In the 1990s, self-built software accounted for 35–40% of total spend
- Today, that number stands around 14%
Earlier, enterprises moved toward packaged software and vendor-led customization because managing internal code was difficult and inefficient.
Now, with AI tools capable of generating code efficiently, the cycle could tilt again.
That’s the structural question investors are pricing in.
Revenue Exposure to AI
Another data point that explains investor caution:
- Around 12–15% of sector revenues face direct exposure to AI-led productivity gains and displacement risks
Beyond this, there could be additional pressure from:
- Automation layers
- Third-party software efficiencies
This creates uncertainty on long-term growth visibility.
And markets dislike uncertainty.
From Peak Euphoria to 32% Drawdown
In December 2025, the Nifty IT index touched 41,530.3.
At that time, optimism around digital spending and recovery was strong.
Fast forward to now:
- 32% decline from peak
- Worst fall since 2008
- 9.5% drop in four sessions
The narrative has shifted.
Earlier it was digital acceleration.
Now it is AI disruption.
Same sector. Different story.
What This Means for the Stock Market Today?
The stock market today is clearly signaling caution in technology names.
Key takeaways:
- Correction is deep — 32% from peak
- Losses are sustained — 13% in 2025, 15% in 2026
- AI disruption remains a core overhang
- US macro conditions are adding pressure
From TCS, Infosys to Wipro share price, the trend remains under stress.
This is not about one bad day.
It is about a structural transition phase.
Markets are forward-looking. And right now, they are adjusting valuations to reflect that shift.
Company Snapshot: Heavyweights in Focus
The movement in frontline names defines the sector:
- TCS
- Infosys
- Wipro
- HCL Technologies
- Tech Mahindra
- LTIMindtree
- Mphasis
When these stocks move together, the Nifty IT index reacts sharply.
And when the Nifty IT reacts, the broader stock market today feels the ripple.
Summary: Worst IT Fall Since 2008
Let’s simplify everything.
- Nifty IT down 32% from peak
- Worst drawdown since 2008 financial crisis
- Four straight sessions of decline
- 9.5% fall in just four days
- AI disruption fears rising
- US job strength influencing rate outlook
- 12–15% revenue exposure to AI risks
From TCS, Infosys to Wipro share price, the pressure is broad and persistent.
This phase reflects fear of disruption more than fear of slowdown.
For now, sentiment remains cautious. The sector is in transition. And the market is reacting in real time.
In the stock market today, IT is clearly the center of attention — but for reasons very different from what investors were celebrating just a few months ago.
Source: Livemint
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