Indian IT stocks experienced sharp declines on February 4, 2026, amid broader market pressures from global software sector weakness. The sell-off tracked an overnight drop in US technology and software stocks, driven by concerns over artificial intelligence (AI) disruption to traditional IT services and research models.
Key Indian IT Stock Performance (as of early trading on Feb 4, 2026)
- HCL Technologies: BSE ₹1,601.20 (-5.46%), NSE ₹1,695.30 (+1.10%)
- Info Edge: BSE ₹1,204.00 (-3.71%), NSE ₹1,250.70 (+1.08%)
- Infosys: BSE ₹1,564.50 (-5.47%), NSE ₹1,656.00 (+1.63%)
- Mphasis: BSE ₹2,681.00 (-4.94%), NSE ₹2,819.30 (+2.10%)
- Oracle Financial Services: BSE ₹7,519.00 (-3.93%), NSE ₹7,826.50 (+1.19%)
- TCS: BSE ₹3,062.25 (-5.01%), NSE ₹3,225.30 (+1.76%)
- Tech Mahindra: BSE ₹1,631.00 (-4.93%), NSE ₹1,716.50 (-0.44%)
- Wipro: BSE ₹233.65 (-3.63%), NSE ₹242.69 (+0.16%)
- S&P BSE IT Index: 35,347.48 (-4.85%)
- Nifty 50: 25,727.55 (+2.55%) (broader market showed mixed performance)
- S&P BSE Sensex: 83,815.32 (+0.09%)
Note: Prices reflect early session data with BSE showing steeper declines in many cases compared to NSE, possibly due to intraday volatility or data timing.
Reasons Behind the Decline
The drop followed a significant sell-off in US software and professional services stocks on February 3, 2026. Key factors included:
- Launch of Anthropic’s legal automation tool: The AI firm’s new productivity tool for legal tasks (such as contract review, compliance workflows, and legal briefings) raised fears that AI could automate routine work in legal, data, research, and IT services sectors.
- Gartner’s weak guidance: The research firm reported Q4 results but provided 2026 forecasts below expectations (adjusted EPS at least $12.30 vs. consensus $13.52; revenue $6.455 billion vs. $6.703 billion). CEO Eugene Hall highlighted a tougher selling environment due to delayed decisions and scrutiny among non-AI-focused clients.
- Broader US market impact: Stocks like Gartner fell sharply (up to 21-25% in some reports), with Adobe, Salesforce, and Microsoft declining 3-8%. This dragged the Nasdaq down over 350 points (around -1.43%). Indian IT ADRs (e.g., Infosys down ~5-6%, Wipro ~5%) mirrored the weakness.
These developments intensified investor concerns about the long-term impact of generative AI on traditional IT outsourcing and services models.
