Indian IT sector stocks experienced significant declines in midday trading on February 4, 2026, with several major companies recording drops of 4-8%. The S&P BSE IT index fell sharply by around 6.43% to 34,761.44, reflecting broad weakness in the sector.
Key Stock Performance (as of 12 PM)
- Infosys: BSE ₹1,519.80 (-8.17%), NSE ₹1,518.80 (-8.29%)
- TCS: BSE ₹3,015.70 (-6.45%), NSE ₹3,012.80 (-6.59%)
- Tech Mahindra: BSE ₹1,607.95 (-6.28%), NSE ₹1,607.90 (-6.33%)
- Mphasis: BSE ₹2,629.00 (-6.78%), NSE ₹2,622.10 (-6.99%)
- HCL Technologies: BSE ₹1,600.00 (-5.53%), NSE ₹1,600.00 (-5.62%)
- Wipro: BSE ₹232.15 (-4.25%), NSE ₹231.99 (-4.41%)
- Info Edge: BSE ₹1,171.00 (-6.35%), NSE ₹1,172.90 (-6.22%)
- Oracle Financial Services: BSE ₹7,512.75 (-4.01%), NSE ₹7,497.50 (-4.20%)
Broader market indices showed limited movement, with Nifty 50 at 25,717.55 (-0.04%) and S&P BSE Sensex at 83,627.81 (-0.13%).
Reasons for the Decline
The weakness in Indian IT stocks followed a significant sell-off in US software and professional services companies on February 3, 2026. Investor sentiment turned cautious after Anthropic announced the launch of a legal automation and productivity tool aimed at tasks such as contract review, compliance workflows and legal research. The development added to concerns that generative AI could increasingly automate routine work across legal, data, research and IT services, potentially impacting demand for traditional outsourcing models.
Adding to the pressure was subdued guidance from Gartner, which reported its Q4 results but issued 2026 forecasts below market expectations. The company cited delayed client decision-making and heightened scrutiny on discretionary spending, particularly among customers that are not prioritising AI-led initiatives. Gartner’s stock saw a sharp decline, which further dampened sentiment across the US tech and services space.
The broader US market reaction was also negative, with several large software names seeing declines and the Nasdaq Composite falling over 1%. Indian IT ADRs listed in the US mirrored this weakness, reinforcing selling pressure on domestic IT stocks during Indian market hours.