IT stocks today: Indian IT stocks came under intense selling pressure on Tuesday, October 27, as investors reassessed the sector's growth prospects amid rising concerns over artificial intelligence (AI), global economic uncertainty and elevated valuations. Moreover, weakness on Dalal Street added to the weakness.
The sell-off pushed the Nifty IT index down 2.3%, making it the worst-performing sectoral index of the day, compared with a 0.4% decline in the Nifty 50.
Heavyweights including Infosys, TCS, Wipro and HCL Technologies dragged the sector lower, raising questions about whether the latest correction is a temporary bout of profit-taking or a warning that the traditional IT services model faces a more challenging growth environment.
Selling was broad-based across the IT sector, with several large-cap and mid-cap companies losing ground during intraday trade. TCS and Infosys fell as much as 3%, while Persistent Systems and Wipro declined more than 2% each. HCL Technologies, Mphasis, Tech Mahindra and Coforge shed more than 1% apiece. L&T Technology Services was the notable exception, trading around 1% higher.
The sharp decline came despite a strong recent performance in the sector. The Nifty IT index had gained 12% over the past month, 8% over three months and 9% over six months. However, the index remained down 12% over the past year, suggesting that the recent rebound has not yet erased the damage from its longer-term decline.