The stock market today brought a change in mood for IT investors. After days of pressure, TCS, Wipro, and HCL Tech share price saw a steady rebound as the Nifty IT index moved higher on February 17.
This comes after a sharp AI-fuelled selloff that erased nearly ₹4.85 lakh crore in market capitalisation from Nifty IT companies. The fall was deep. The recovery is cautious. But it has started.
Let’s break down what really happened.
Market Performance: Nifty IT Extends Gains
The relief rally was visible in sector numbers.
- Nifty IT index rose 2% to close at 33,496
- It had already gained 0.17% in the previous session
- The index had fallen 15% since February 4
- This marked its worst monthly fall since March 2020
All index constituents participated in the rebound. The bounce may look small, but after nine straight sessions of decline, even stability matters.
The stock market today showed selective buying in frontline IT names.
AI Shockwave: What Triggered the ₹4.85 Lakh Crore Selloff?
The turbulence began after an AI-related announcement on February 3, which triggered panic across global tech counters.
From February 4 onward, IT stocks saw relentless selling pressure.
In just nine trading sessions:
- IT heavyweights fell between 12% to 17.5%
- Combined market cap erosion hit ₹4.85 lakh crore
The scale of wealth erosion tells the story. Investors didn’t wait. They exited first and asked questions later.
TCS Share Price Movement: Biggest Market Cap Hit
Among all IT stocks, Tata Consultancy Services (TCS) took the largest impact in terms of market capitalisation loss.
- Market cap erosion: ₹1,87,670 crore
- The fall pushed TCS out of the ₹10 lakh crore club
The TCS share price was under pressure throughout the nine-session fall. The rebound now brings short-term relief, but the numbers show how sharp the correction was.
Infosys, Wipro, HCL Tech Share Price Recovery
While TCS saw the biggest absolute impact, other IT leaders were not spared.
- Infosys lost ₹1,17,747 crore in notional market cap
- Its stock had declined 17.5% from February 3 to 16
- On February 17, Infosys shares rose 3%
Alongside Infosys:
- Wipro gained over 1%
- HCL Technologies advanced over 1%
- Tech Mahindra also moved higher by over 1%
The HCL Tech share price, in particular, had earlier fallen in the 12–16% range during the correction window.
Today’s rebound was broad-based. That’s important. It signals sector participation, not stock-specific movement.
Stock Market Today: Is the Worst of IT Selloff Behind?
The big question investors are asking in the stock market today is simple:
Has the IT sector seen the worst?
The selloff was sharp. But fundamentals show moderate growth, not collapse.
For FY25, large-cap IT companies reported:
- Revenue growth in the 2–4% range (constant currency terms)
Yes, this is slower compared to the double-digit growth seen during the post-Covid digital boom. But it is still growth.
The medium-term themes remain:
- Artificial Intelligence integration
- Cloud migration
- Cybersecurity services
- Data engineering
The AI disruption triggered volatility. But AI also demands integration services — and Indian IT companies operate exactly in that space.
That is where the deeper debate lies.
Why IT Stocks Reacted So Sharply?
The IT selloff wasn’t random. It was driven by fear of business model disruption.
AI-led automation raised concerns around:
- Pricing pressure
- Reduced manpower billing
- Margin compression
At the same time, global capital has been shifting toward AI infrastructure and AI software platforms.
This shift created temporary pressure on traditional IT services stocks.
Valuations had to reset. And markets did not wait.
Revenue Growth Snapshot: FY25 Performance
Even during this uncertain phase, large-cap IT companies reported:
- 2–4% constant currency revenue growth in FY25
This is modest. Not exciting. But stable.
Compared to:
- Double-digit growth during post-pandemic tech spending surge
The slowdown is visible. But the growth line is not negative.
That distinction matters in the stock market today context.
Valuation Reset in IT Stocks
Current data indicates:
- Large-cap IT stocks are trading at 18x FY27E EPS
For comparison:
- During the Global Financial Crisis, multiples were 11–12x
- During early Covid-19 phase, similar trough levels were seen
- FY13–17 slowdown average was 15–17x
This shows that valuations are lower than peaks, but not at extreme stress levels.
Markets have corrected. But not capitulated.
What This Means for TCS, Wipro, HCL Tech Share Price?
The sharp fall followed by a 2% sector bounce tells us one thing:
Sentiment was stretched.
Now, the stock market today is attempting balance.
- TCS share price has stabilised after heavy market cap erosion
- Wipro share price joined the sector rebound
- HCL Tech share price recovered after double-digit decline
This is not a V-shaped recovery story. It’s a stabilisation phase.
The sector is adjusting to a new AI-driven cycle.
Summary: IT Stocks Find Footing After Sharp Correction
Let’s recap the key numbers:
- ₹4.85 lakh crore erased from Nifty IT market cap
- Nifty IT down 15% since February 4
- February 17 rebound of 2% to 33,496
- TCS market cap loss: ₹1,87,670 crore
- Infosys market cap loss: ₹1,17,747 crore
- Large-cap FY25 revenue growth: 2–4%
The panic phase seems to have cooled for now.
The bounce in TCS, Wipro, and HCL Tech share price reflects low-level buying after a deep correction.
The AI-led disruption story is still unfolding. Growth has slowed but not stalled. Valuations have corrected but not crashed.
The stock market today is no longer in panic mode for IT.
But confidence is rebuilding step by step — not in a rush.
And in markets, sometimes stability is the first real sign of recovery.
Source: Livemint
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