IT Stocks Decline After Three-Day Rally as Investors Turn Cautious

Indian information technology stocks came under pressure on Tuesday after recording steady gains over the previous three sessions. 

The pullback followed a period of upward movement in the sector and was accompanied by a cautious stance among investors ahead of key economic data from the United States.

The decline was reflected across all constituents of the Nifty IT index.

Nifty IT Index Under Pressure

The Nifty IT index declined by more than 1% during the session, making it one of the weaker performers among sectoral indices. 

All ten stocks in the index were trading in negative territory, indicating broad-based selling across the IT space.

Mphasis and HCLTech Among Key Losers

Mphasis led the decline within the sector, falling around 1.75% to ₹2,847.50 on the NSE. Oracle Financial Services Software and HCL Technologies also saw notable declines of about 1.71% and 1.66%, respectively, during the session.

Other Major IT Stocks Trade Lower

Other large IT names, including Infosys, Tata Consultancy Services, Wipro and LTIMindtree, also traded lower, with losses of up to 1%. The selling pressure extended across both large-cap and mid-cap IT stocks.

Profit Booking After Recent Gains

Market participants attributed the decline largely to profit booking, following gains of up to 2% in IT stocks over the past three trading sessions. 

Caution Ahead of US Economic Data

Sentiment was also influenced by caution ahead of the release of US employment data. The US jobs report is closely monitored for indications on interest rate trends, which can affect global capital flows.

Given the sector’s significant exposure to US clients, Indian IT stocks tend to react to developments in the US economy.

Read More: Gold Prices Ease on MCX as Profit Booking Weighs on Dec 16, 2025.

Conclusion

The decline in IT stocks reflects a combination of short-term profit taking and cautious positioning ahead of key global economic indicators. Future movement in the sector is likely to depend on developments in overseas markets and clarity on macroeconomic trends.

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