IT Stocks Today: Why Nifty IT Declined 1.50%; Infosys, TCS, LTM, Mphasis Under Pressure

17 Aug 2026 , 01:39 PM

Indian IT stocks witnessed broad-based selling pressure today, with the Nifty IT index declining around 1.83%. Major technology stocks including Infosys, TCS, LTM, HCL Tech, Wipro, Tech Mahindra and Mphasis traded lower as investors turned cautious amid a combination of global and domestic factors.

The decline comes after several IT stocks delivered strong gains in recent weeks, making profit booking another important factor behind today’s weakness.

1. Weak US Dollar Weighs on IT Stocks

A softer US dollar against the Indian rupee remained one of the key concerns for Indian IT companies.

Indian IT companies generate a significant portion of their revenues from international markets, particularly the US. Since these revenues are largely dollar-denominated, a weaker dollar can negatively impact the rupee value of their overseas earnings.

As a result, movements in the USD/INR exchange rate remain an important factor for investors tracking IT stocks.

2. Geopolitical Uncertainty Raises Risk Aversion

Geopolitical developments also weighed on overall market sentiment.

The lack of meaningful progress in US–Iran peace negotiations increased uncertainty among investors, prompting a more cautious approach toward risk assets.

Technology stocks, which often trade at relatively higher valuations based on future earnings expectations, can face increased selling pressure when global risk appetite deteriorates.

3. Crude Oil Prices Move Above $89

Another factor affecting sentiment was the rise in crude oil prices.

Brent crude moved back above $89 per barrel intraday, raising concerns around inflation and global economic stability.

Higher crude prices can increase inflationary pressure and potentially complicate the interest-rate outlook for major economies. This can affect investor appetite for growth-oriented sectors such as information technology.

4. Profit Booking After Recent Gains

Profit booking appears to have played an important role in today’s decline.

Several IT stocks have delivered strong gains over the past month. LTM gained around 23.8%, while Coforge rose 19.6% and HCL Tech gained approximately 10.8% over the same period.

After such a sharp run-up, investors may choose to lock in gains, particularly in stocks that have seen strong momentum.

This selling can become more pronounced when broader market sentiment turns cautious.

5. India VIX Rises, Signalling Higher Volatility

The Nifty India VIX rose around 3%, indicating an increase in market uncertainty.

A rise in the volatility index generally reflects greater investor concern about near-term market movements. In such an environment, investors often reduce exposure to sectors and stocks that have recently outperformed.

6. Mixed Global Market Cues

Global market signals were also not particularly supportive.

Mixed Asian markets and weaker sentiment toward technology stocks internationally added to the pressure on Indian IT counters.

Since India’s technology sector has strong exposure to global technology spending and the US economy, international market trends remain an important influence on investor sentiment toward IT stocks.

7. Sectoral Rotation Adds to IT Selling

Today’s market action also reflected sectoral rotation.

Investors appeared to favour relatively defensive or theme-driven segments such as Consumer Durables, Media and Defence, while IT and PSU Banks remained under pressure.

Such rotation can result in selling in sectors that have recently performed well as investors move money toward areas offering comparatively stronger near-term momentum or defensive characteristics.

IT Stocks Under Pressure Today

Several major IT stocks declined during today’s trading session.

IT Stock	Intraday Low (%)
Infosys	-2.3%
TCS	-1.73%
LTM	-2.45%
HCL Tech	-1.37%
Wipro	-1.3%
Tech Mahindra	-1.0%
Mphasis	-2.1%
Tata Technologies	-2.6%

Tata Technologies was among the notable laggards, falling around 2.7%, while Infosys, LTM and Mphasis declined approximately 2.3% each.

Note: Stock performance data is as of 1:35 PM on NSE

IT Stocks: Strong Recent Gains Make Profit Booking Relevant

Today’s decline needs to be viewed in the context of recent performance.

Several IT stocks had rallied significantly over the previous month. LTM, for instance, had gained around 23.8% in one month, while Coforge had risen approximately 19.6%.

HCL Tech also delivered a monthly gain of around 10.8%.

Therefore, today’s decline may not necessarily indicate a fundamental deterioration across the IT sector. Instead, the combination of elevated recent gains, global uncertainty and weaker risk appetite may have encouraged investors to book profits.

Mid-Cap and Small-Cap IT Stocks in Focus

Mid-cap and small-cap IT stocks also witnessed mixed performance. The following stocks are among those in focus based on their intraday, one-month and year-to-date performance.

Company	CMP	Intraday Return	1-Month Return	YTD Return
Mphasis	₹2,489	-1.43%	3.9%	-12.0%
Persistent Systems	₹5,545.50	+0.36%	6.9%	-11.7%
OFSS	₹11,766	+0.07%	Nil	53.0%
Coforge	₹1,840	-0.24%	19.6%	8.9%
Cyient	₹849	+0.11%	-0.5%	-23.4%
Tata Technologies	₹848.10	-2.06%	12.0%	31.9%

Note: Mid-cap and small-cap IT stock performance data is as of 1:35 PM on NSE

The performance highlights a divergence within the IT segment. While some stocks have delivered strong recent or year-to-date returns, others continue to trade below their previous levels.

What Does the IT Sector Outlook Look Like?

The near-term outlook for IT stocks is likely to remain sensitive to several factors, including currency movements, crude oil prices, global economic growth, US technology spending, interest-rate expectations and geopolitical developments.

For stocks that have already rallied sharply, valuation and profit-booking risks could remain important considerations. At the same time, any improvement in global risk sentiment or renewed expectations of stronger technology spending could support the sector.

Investors should therefore look beyond a single day’s market movement and track earnings growth, deal wins, margins, revenue growth, management commentary and valuations when evaluating individual IT stocks.

Key Takeaways for IT Stock Investors

• Nifty IT fell around 1.83% amid broad-based selling.
• Infosys, TCS, LTM, HCL Tech and Mphasis were among the major stocks under pressure.
• A weaker US dollar remains a concern for dollar-revenue-heavy IT companies.
• Brent crude above $89 per barrel added to inflation and global growth concerns.
• Geopolitical uncertainty surrounding US–Iran negotiations reduced risk appetite.
• The India VIX increased around 3%, reflecting higher market uncertainty.
• Strong recent gains in stocks such as LTM and Coforge made profit booking an important factor.
• Investors also rotated toward sectors such as Consumer Durables, Media and Defence.
• The medium-term outlook for IT stocks will continue to depend on global technology spending, earnings growth, currency movements and valuations.

Conclusion

The sharp decline in IT stocks today reflects a combination of profit booking, weaker global risk appetite, currency concerns, higher crude oil prices and geopolitical uncertainty rather than a single trigger.

While the near-term environment remains volatile, the recent performance of several IT stocks shows that investor interest in the sector has not disappeared. For investors, the key will be to distinguish between short-term market corrections and changes in the underlying earnings outlook of individual IT companies.

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