Nifty IT Index Falls 4.95% Amid Broad Market Pressure

22 Apr 2026 , 01:41 PM

The Nifty IT Index witnessed a sharp decline of 4.56%, closing at 30,278.20. The fall reflected widespread selling pressure across the technology sector, driven by weak earnings performance and cautious demand outlook. Investor sentiment turned negative as concerns grew over near-term growth sustainability in the IT space.

Heavy Selling Across Major IT Stocks

The selloff was broad-based, with most large-cap IT stocks ending in the red. HCLTech plunged 10%, while Tech Mahindra fell 6.23% to ₹1,407.30. Persistent Systems declined 5.16% to ₹5,055.10 after slightly weak results. Coforge dropped 5.79% to ₹1,218.00, and Infosys slipped 4.23% to ₹1,257.70. Meanwhile, Tata Consultancy Services (TCS) fell 3.93% to ₹2,507.80, LTIMindtree declined 4.05% to ₹4,565.00, Mphasis lost 2.85% to ₹2,350.00, and Wipro edged down 0.95% to ₹203.07. In contrast, Oracle Financial Services Software stood out as the only gainer with a 0.76% rise to ₹7,991.00.

Earnings Misses Trigger Sharp Stock Reactions

A major trigger for the decline was weak earnings from key IT companies. HCLTech reported Q4FY26 net profit of ₹4,488 crore, up 4% YoY but below analyst expectations of ₹4,657 crore. Revenue stood at ₹33,981 crore, reflecting a 12.3% YoY increase, but still failing to support investor sentiment. Similarly, Persistent Systems saw its stock fall 5.16% to ₹5,055.10 after reporting results that were slightly below market expectations.

Muted Growth Outlook for Tech Mahindra and Infosys

Guidance from major IT firms also pointed to subdued momentum. Tech Mahindra is expected to report Q4FY26 revenue of $1,624 million, up just 0.9% QoQ, translating to ₹14,804 crore in INR terms, which represents 2.9% QoQ growth. Constant currency growth remains muted at around ~0.5% QoQ. Meanwhile, Infosys is projected to post a net profit of ₹7,508.6 crore, up 4% YoY from ₹7,218 crore last year, but lower than ₹7,625 crore in Q3FY26, marking a sequential decline of -1.5% QoQ. Revenue is estimated at ₹46,567 crore, reflecting a 13.7% YoY increase from ₹40,925 crore and a 2% QoQ rise from ₹45,479 crore.

IT Sector Outlook Weakens Amid Demand Uncertainty

Overall, the correction highlights growing concerns in the IT sector despite continued revenue growth across companies ranging from 0.9% to 12.3%. Profit growth remains modest at around 4% YoY for most firms, while constant currency growth has slowed sharply to approximately ~0.5% QoQ. The slowdown is being attributed to weak client spending and delayed technology budgets amid ongoing geopolitical uncertainties, leading to a broad-based selloff across the sector.

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