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Infosys, TCS, Wipro, HCL Tech Fall as US–Iran Tensions Rattle IT Stocks

Written by: Kusum KumariUpdated on: 20 Feb 2026, 3:58 pm IST
Indian IT stocks drop up to 1.5% as US software shares fall and US–Iran tensions rise. FII selling and AI-led correction.
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Indian IT stocks saw strong selling in early trade on Friday after a sharp fall in US software stocks and rising US–Iran tensions.

Shares of major IT companies like Infosys Ltd, Tata Consultancy Services Ltd, Wipro Ltd and HCL Technologies Ltd declined soon after the market opened. By 9:30 AM, the Nifty IT index was down around 1.5%.

Why Are IT Stocks Falling?

1. Sell-off in US Tech Stocks

US software stocks witnessed heavy selling on Thursday. ADRs of Indian IT firms and global tech companies like Accenture and Cognizant also declined. This negative trend impacted Indian IT stocks.

2. Rising US–Iran Tensions

There is growing tension between the US and Iran, with reports of a military buildup in West Asia. The possibility of conflict has made investors cautious and risk-averse.

3. Hawkish US Fed Outlook

A tough stance by the US Federal Reserve has added to global market uncertainty.

4. Rise in Volatility and FII Selling

India VIX jumped over 10% to 13.46, indicating higher market volatility. Foreign Institutional Investors (FIIs) have been selling, and even Domestic Institutional Investors (DIIs) turned net sellers in the previous session.

Impact on Rupee and IT Sector

Rising tensions have pushed crude oil prices higher. Since India imports a large portion of its oil needs, higher oil prices can put pressure on the Indian Rupee.

IT stocks have also been under pressure due to the recent AI-led correction in global tech markets.

Also Read: Best PSU Stocks in India in February 2026!

Conclusion

Indian IT stocks are facing short-term pressure due to global uncertainties, US tech sell-offs and rising geopolitical tensions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 20, 2026, 10:25 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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