Indian IT Stocks in Focus After ₹1.2 Lakh Crore Rout; Global Tech Rebound Offers Hope
Shares of leading Indian IT companies will remain under close watch on Wednesday, February 25, after a sharp sell-off on Tuesday wiped out nearly ₹1.2 lakh crore in market capitalization across the sector.Heavyweight names including Infosys Ltd., TCS Ltd., Wipro Ltd., HCLTech Ltd., Tech Mahindra Ltd., Persistent Systems Ltd., Coforge Ltd., L&T Technology Services Ltd. and KPIT Technologies Ltd. saw steep declines, dragging the broader technology pack lower.
IT Stocks Dominate Nifty 500 Losers List
The scale of the decline was evident in the broader markets. Eight out of the top 10 losers on the Nifty 500 index were technology stocks, underscoring the depth of the correction in the sector.Indian IT companies fell between 4% and 10% during Tuesday’s session, leading to a market capitalization erosion of over ₹1 lakh crore. The sell-off was driven largely by concerns around potential disruption from artificial intelligence tools introduced earlier this month.
US Software Rebound Signals Possible Relief
Despite the sharp domestic correction, global cues turned supportive overnight. Software stocks in the United States, which had been under pressure since Anthropic unveiled new AI tools, staged a recovery.Shares of Salesforce rose more than 4% ahead of its results announcement. Other SaaS players such as Docusign and ServiceNow gained between 1% and 2%.
The rebound followed Anthropic’s announcement of partnerships with multiple SaaS firms, including Salesforce. The move signaled integration with existing software solution providers rather than disruption or displacement. These fears had initially triggered the sharp sell-off in global and Indian technology stocks.
Nifty IT Near Worst Monthly Performance Since 2003
Another factor that could influence sentiment is technical positioning. Most of the major IT stocks are now in what market participants describe as oversold territory.In the first two months of the year alone, seven out of the 10 constituents of the Nifty IT index have declined 20% or more. The index itself was on track for its worst monthly performance since April 2003.
Some market participants who remain constructive on the sector have indicated that concerns over AI-led disruption may be exaggerated. This view was reiterated on Tuesday by Wedbush Securities.
Sector at an Inflection Point
With valuations compressed sharply and global software stocks showing signs of recovery, Wednesday’s trade could test whether Indian IT counters stabilize after the steep correction.The coming sessions will determine whether the sector extends its slide or attempts a technical rebound, as investors weigh global technology trends against domestic price action.
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