Indian IT stocks faced sharp selling on February 24, 2026, with HCLTech down 4.1%, Infosys falling 3.6%, and TCS slipping 3.24%. The Nifty IT index dropped over 3.5%, hitting fresh 52-week lows. Analysts cite AI-driven disruption fears, cautious client spending, and global brokerage downgrades as key triggers.
The Nifty IT index extended its losing streak, plunging 3.5% intraday as major tech stocks came under pressure. HCLTech fell 4.1%, Infosys dropped 3.6%, and TCS declined 3.24%, eroding over ₹84,000 crore in combined market capitalization.
Global brokerages including CLSA, HSBC, and Jefferies have cut target prices for Indian IT firms, citing slowing growth visibility and AI-led disruption risks. The sector has now lost nearly 20% in February, marking its weakest monthly performance in years.
Despite near-term volatility, experts believe long-term demand for cloud, AI, and digital transformation services will sustain growth, though margins may remain under pressure.
Key Highlights
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Stock Performance: HCLTech (-4.1%), Infosys (-3.6%), TCS (-3.24%)
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Index Impact: Nifty IT down 3.5%, hitting fresh 52-week lows
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Market Cap Loss: Over ₹84,000 crore wiped out in a single session
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Drivers: AI disruption fears, cautious client spending, brokerage downgrades
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Outlook: Near-term weakness, but long-term digital demand remains intact
Source: India Today, The Hindu BusinessLine, Goodreturns, Mint, Business Today (February 24, 2026)