Shares of Tech Mahindra fell over 6% on Wednesday, February 4, extending losses in line with a sharp global sell-off in technology and software stocks after weak cues from the US markets.
The decline was largely driven by an overnight rout in US-listed software and IT services stocks, which triggered risk-off sentiment across global tech counters. On Wall Street, technology research firm Gartner plunged as much as 25% intraday and closed about 21% lower, dragging the broader software and services space down with it. Major SaaS and tech names such as Adobe, Salesforce, Microsoft, Accenture and Cognizant declined between 3% and 10%, while the Nasdaq shed more than 350 points.
Tech Mahindra, which has significant exposure to the US market, mirrored the negative global trend as investors reassessed near-term growth visibility for IT services companies. The pressure was further compounded by losses in US-listed ADRs of Indian IT firms, which saw declines of up to 6% overnight, setting the tone for early trade in India.
Another key trigger was renewed concern around artificial intelligence-led disruption following the launch of Anthropic PBC’s AI-based legal automation tools. The development reignited fears that rapid AI adoption could reduce demand for traditional IT services, consulting and outsourcing, leading to aggressive selling across the sector. The broader sell-off wiped out an estimated $285 billion in market value globally in a single session.
Adding to the caution, Gartner’s weaker-than-expected full-year guidance highlighted a challenging demand environment, with enterprises delaying or scrutinising technology spends amid fast-changing AI-led business models. This commentary amplified concerns around near-term deal momentum for IT services players such as Tech Mahindra.
The fall in Tech Mahindra shares was part of a broader sectoral decline, with Infosys, TCS, Wipro and HCLTech also trading with losses of over 5–6% during the session, indicating that the move was driven by global sentiment rather than any company-specific development.
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