IT Stocks Face Sell-Off After Weak Guidance By Infosys, Nifty IT Declines Over 5%

Information technology (IT) companies led the decline of the Indian benchmark indices on Friday, with sector majors slipping up to 7 percent during the trade.
Uneven earnings and weak global sentiment weighed on the stocks, with the Nifty IT index slipping up to 5.5 percent.

Among the 10 worst-performing stocks in the Nifty 50 pack, the top four were IT majors Infosys, Tata Consultancy Services, Tech Mahindra, and HCLTech.

The stock of Infosys fell up to 7.2 percent on the bourses on Friday after announcing a lower-than-expected revenue guidance for FY27.
India’s second-largest software company on Thursday reported an increase of 20 percent in profit and a rise of 3.1 percent in revenue in the fourth quarter.

It surpassed street expectations on profit but missed revenue estimates. On top of it, the company widened its revenue guidance for FY27 to 1.5–3.5 percent from 3–3.5 percent earlier due to uncertainty after the start of the West Asian war.

The negative sentiment weighed on peers as well. The stock of HCLTech fell up to 6.2 percent to remain the worst-performing stock after Infosys.

The stock of India’s largest IT company, TCS, declined as much as 5.1 percent during the trade. TCS was followed by Tech Mahindra, which also declined up to 5.1 percent. The stock of Wipro fell 2.5 percent on Friday.

The fourth-quarter results have indicated a weak growth outlook for the sector. While it was the potential disruption by artificial intelligence technology earlier, the war in the Gulf region has also added to the woes of Indian IT companies.

The Nifty IT index has fallen over 20 percent this year. Midcap IT stocks such as Coforge and Mphasis also declined around 3–3.5 percent, indicating broader selling across the sector.