IT services companies were under intense selling pressure on Thursday, April 17, as global headwinds, sector-specific warnings, and quarterly earnings updates triggered a sharp decline in stock prices across the board.
The NIFTY IT index, which has already shed over 23% so far in 2025 (as of April 16 closing), was down over 2% intraday, extending its year-to-date losses. Out of the ten major constituents, nine were trading in the red.
Wipro emerged as the biggest loser in the NIFTY IT basket, falling over 5.6% to ₹233.60 after the company reported a muted Q4 performance and issued a weak revenue guidance for Q1 FY26. The IT major now expects a 1.5%–3.5% decline in revenue in constant currency terms for the June quarter, triggering a selloff in the stock. The company’s current market capitalization stands at ₹2.44 lakh crore.
Sonata Software, though not part of the NIFTY IT index, plunged nearly 8.3% to ₹307.40 after it warned that revenue estimates from its largest international client for Q4 FY25 would be lower than expected. The stock has dropped nearly 14% at its lowest point today.
Other major IT stocks were also trading lower:
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Infosys was down 2.1% to ₹1,383.60 ahead of its Q4 results later today.
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TCS slipped 1.3% to ₹3,231.90 as broader concerns spooked investor sentiment.
Global triggers weigh heavily
The selloff was exacerbated by a fresh warning from Nvidia, which said it expects a $5.5 billion hit due to new U.S. export restrictions on its AI chips to China. These chips accounted for $12–$15 billion in revenue last year. AMD also projected an $800 million impact from similar curbs.
As a result, the NASDAQ dropped over 3% overnight, dragging tech stocks globally. The Dow Jones Industrial Average fell 699 points, while the S&P 500 lost over 2.2%.
Adding to the woes, U.S. Federal Reserve Chair Jerome Powell said that economic growth is likely to slow amid higher inflation due to Trump’s proposed tariff measures. The Fed is expected to wait for further data before adjusting rates, but Powell’s comments underscored the uncertain global economic backdrop.
With pressure mounting from both domestic and international fronts, analysts expect the IT sector to remain under stress in the near term, especially as Q4 results continue to roll in with subdued outlooks.