New Delhi, March 30 – Indian IT stocks tumbled on Monday, March 30, as rising geopolitical tensions in West Asia sparked concerns over the security of undersea internet cables crucial for India’s global digital connectivity. The Nifty IT index declined 1.5%, with key players including Oracle Financial Services Software, HCL Technologies, Infosys, Persistent Systems, Tech Mahindra, and Wipro recording losses of 1-3%. TCS was the lone gainer in the index.
Analysts attributed the selloff to Iran’s threats targeting subsea internet cables in the Red Sea and the Gulf of Hormuz, vital conduits for India’s international data traffic. Approximately one-third of India’s westward internet traffic passes through this strategic corridor, which also doubles as a major energy shipping channel.
Major subsea networks such as AAE-1, FALCON, Gulf Bridge, and Tata’s TGN-Gulf, along with Google’s Blue-Raman and Bharti Airtel’s Sea-Me-We 6, play a critical role in India’s cloud infrastructure and internet backbone. Disruption of these systems could trigger delays in data routing, slowdowns, and congestion, with repair operations potentially hampered by conflict zones.
Despite the heightened risk, analysts suggest that a full-scale internet shutdown is unlikely in the immediate term. However, IT stocks may face increased volatility, operational risks, and medium-term capital expenditure pressures on networks and data centers.
Technical Outlook
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that Nifty IT has shown relative strength over the past weeks, sustaining gains even amid broad market weakness. The index faces immediate resistance at the 30,000 level, aligned with its 20-day DEMA, while support remains robust at 28,000.
“Stocks like TCS, Tech Mahindra, and HCLTech remain key outperformers and are likely to lead the upmove once Nifty IT sustains above the 30,000 mark,” Bhosale said.
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