Why Nifty IT is down over 8% in 4 sessions
08 Jun 2026
The Nifty IT index has witnessed a major slump, declining by 1.8% to 28,500 in morning trade today.
This marks its fourth consecutive session of losses, bringing the overall decline to a staggering 8.4% over four sessions.
The drop is largely attributed to a global selloff in technology and AI-linked shares, which has triggered fresh profit-booking across the sector.
Wipro among top losers
Market reaction
The Nifty IT index has been one of the worst-performing sectoral indices today, even as the benchmark Nifty 50 index fell by 1%.
Wipro was hit the hardest among frontline technology stocks, plummeting by 5.5% to ₹187.4 and emerging as the top loser on the Nifty 50 index.
TCS and Infosys also witnessed declines of 1.9% and 1.3%, respectively, while HCL Technologies and Tech Mahindra traded lower by about 1% each.
Global technology markets experience major selloff
International impact
The decline in Indian IT stocks mirrors a broader selloff in global technology markets.
Wall Street witnessed a major fall on Friday, with the NASDAQ plunging by 4.2%, its steepest single-day drop since April 2025.
The Philadelphia Semiconductor Index also saw its biggest one-day loss since March 2020, losing over $1 trillion in market value.
Asian tech-heavy markets continued this trend today with South Korea's Kospi crashing by 8% and Japan's Nikkei falling nearly by 4%.
Reasons behind AI trade reversal
Market analysis
The reversal in AI trade can be attributed to two main factors.
First, semiconductor company Broadcom's outlook disappointed investors, raising concerns that expectations around AI-related spending may have been too optimistic.
Second, a stronger-than-expected US jobs report has raised fears of a prolonged hawkish stance from the Federal Reserve, making richly valued technology stocks less appealing.
