Nifty IT Falls 9% in 4 Days as TCS, Wipro Slide; AI Concerns and US Market Weakness Weigh on Sector

The Nifty IT Index continued its downward trend on June 8, 2026, falling nearly 2% in intraday trade. Over the last 4 trading sessions, the index has declined about 9%, reflecting growing concerns about the outlook for the information technology sector.

The sell-off followed a sharp decline in US technology stocks, with the Nasdaq 100 falling 5% on Friday. At around 9:39 AM, the Nifty IT index was down 1.8%, compared to a 1% decline in the broader Nifty 50.

TCS and Wipro Among Major Losers

IT heavyweights witnessed significant selling pressure during the session.

Tata Consultancy Services Limited (TCS) fell around 2.5% to an intraday low of ₹2,144.10, its lowest level since August 2020. The stock has declined nearly 33% so far in calendar year 2026, significantly underperforming the Nifty 50, which has fallen about 11.5% during the same period.

Meanwhile, Wipro Limited slipped as much as 6% during intraday trading to ₹187.80. The stock has fallen around 9% over the past week and is trading close to its 52-week low of ₹186.50.

Why Are IT Stocks Under Pressure?

Investor sentiment toward IT stocks has weakened due to a combination of global and sector-specific factors.

One key concern is the growing impact of Generative Artificial Intelligence (GenAI) on the traditional IT services business model. Investors are reassessing how AI could change software development, maintenance, and outsourcing services, potentially affecting future revenue growth.

At the same time, macroeconomic uncertainty and geopolitical developments have added to market caution.

Weakness in US Technology Stocks Adds Pressure

Indian IT companies derive a large portion of their revenue from global clients, particularly in the United States. As a result, movements in US technology stocks often influence investor sentiment toward Indian IT firms.

On Friday, US markets ended sharply lower as stronger-than-expected economic data increased expectations that the US Federal Reserve could raise interest rates further. The technology-heavy Nasdaq 100 recorded its biggest decline since April 2025, triggering fresh concerns across global tech stocks.

AI Is Reshaping Client Spending Priorities

According to management commentary in the FY26 annual report of Infosys Limited, enterprises are directing more investments toward artificial intelligence to improve efficiency, strengthen resilience, personalise customer experiences, and launch innovative products and services.

While this shift creates new opportunities, it also raises questions about the future demand for some traditional IT services.

Conclusion

The Nifty IT index has come under significant pressure, declining 9% in just 4 trading sessions as concerns over AI-driven disruption, weak US technology markets, and slower growth expectations weigh on investor sentiment. 

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