Indian IT stocks extended their decline on Friday, dragged lower by weak cues from Wall Street after fourth-quarter results of EPAM Systems and guidance from major technology companies, with analysts pointing to global demand uncertainty and AI-driven earnings concerns as the main reasons behind the fall.

The IT index in domestic markets dropped about 1.5 per cent during Friday’s session to a low of 31,804.75 from the previous close of 32,319.40, adding to a difficult stretch for the sector. On Thursday, the index gave up early gains and settled lower.

IT shares have slipped roughly 2 per cent so far this week, following an 8.2 per cent drag last week that marked their worst performance in nearly ten months.

Wipro hits 52-week low, Infosys, TCS under pressure

Heavyweight Infosys fell 2 per cent to ₹1,338.20 compared with its previous close of ₹1,370.50. Tata Consultancy Services traded largely unchanged at ₹2,694.20 on the NSE at 10.21 am after slipping about 1 per cent to ₹2,647.50 from its last close of ₹2,677.90.

Wipro declined 1 per cent, touching a 52-week low of ₹208.25 on the NSE against the previous close of ₹211.21, while HCL Technologies also eased 1 per cent to an intraday low of ₹1,431.

Persistent Systems, Tech Mahindra, LTIMindtree and Mphasis were likewise trading in negative territory at the time of writing.

Tech Mahindra declined 2 per cent, touching a low of ₹1,454.10.

Significant pressue in midcap space

In the midcap segment, the drop was notable, with Coforge slipping 3 per cent to an intraday low of ₹1,318.90. Meanwhile, L&T Technology Services fell 2 per cent from its previous close of ₹3,446.50 to hit a 52-week low of ₹3,366.40.

Tata Technologies was down 1 per cent to ₹593.80.

Market participants said the sell-off reflected a combination of global and structural pressures, including caution around client spending, uncertainty over future contracts, and the growing perception that artificial intelligence-linked disruption could reshape traditional outsourcing revenue models.

Wall Street tech stocks decline

Sentiment was also dented by developments in the US, where technology stocks faced selling pressure after earnings updates. Shares of EPAM Systems fell sharply on Thursday following its fourth-quarter results and forward guidance, reinforcing concerns about slowing demand for digital transformation services. Other technology names, including Accenture, also traded lower, adding to the cautious mood among investors tracking the sector’s outlook.

Traders noted that the domestic sector’s drop appeared to be largely in sympathy with overseas movements, as investors reassessed growth expectations in a shifting technological landscape.

AI fears cloud sectoral outlook

This came despite optimism generated by industry developments such as the India-AI Impact Summit 2026 and a series of new partnerships aimed at strengthening capabilities in artificial intelligence and digital services. While these announcements highlighted long-term potential, the sector remained volatile amid broader concerns about profitability and the pace of transition toward AI-driven business models.

Analysts said the continuing weakness in IT stocks has become another dampener for the broader market, which has otherwise been searching for stable drivers of growth. They added that near-term sentiment is likely to stay fragile until there is clearer evidence that global tech spending is stabilising and that companies can successfully adapt to AI-related shifts without significant earnings pressure.

Published on February 20, 2026