At around 1.34 pm, Nifty IT was trading at 35,133.55 nosediving by 900.85 points or 2.50%.
Mphasis was the worst hit on the index tumbling 4.5% followed by Mindtree plunged 4%. Coforge and L&T Infotech dipped 3.8% each.
Tech Mahindra and HCL Tech shed 2.9% and 2.5% respectively. Infosys plumetted a little over 2%. Wipro and TCS dropped 1.7% and 1.8% respectively.
Oracle Financial Services fell 1.2%.
Globally, investors are picking on higher interest rates with crude oil prices lifting the energy sector.
Overnight, the tech-heavy Nasdaq closed lower by 77 as bond yields rose to 4-month highs. US 10-year yield hits 1.48% which prompts profit booking in technology stocks while banks see buying. The oil acts as a catalyst for higher yields as WTI hits 2-year highs with the inflation threat now a reality.