1. Why are IT stocks falling in February?

IT stocks are falling due to AI disruption fears, weak global tech spending, and cautious management guidance. Slower deal conversions and US economic uncertainty have also hurt investor confidence.

2. Is the 20% fall in the IT index a buying opportunity?

Some analysts see value after the correction as valuations have cooled. However, investors should wait for earnings stability and clearer growth signals before aggressive buying.

3. How are Infosys, TCS, and HCL Tech affected by AI?

AI may reduce demand for traditional outsourcing work. At the same time, it creates new opportunities in AI integration, cloud services, and digital transformation.

4. Will IT stocks recover in 2025?

Recovery depends on global tech spending and US economic growth. If demand improves and AI led deals increase, IT stocks may rebound gradually.

5. What should investors watch before investing in IT stocks?

Track quarterly earnings, deal wins, margin trends, and global macro data. Also monitor management commentary on AI strategy and client spending outlook.

IN Stocks

IT Stocks Index Down 20%: Infosys, TCS, and HCL Tech Extend Selloff

ByRubaisha February 24, 2026February 24, 2026

India’s IT stocks are facing one of their sharpest corrections in recent months. The Nifty IT index has fallen nearly 20 percent in February, wiping out billions in market value. Heavyweights like Infosys, Tata Consultancy Services, and HCL Technologies have extended their selloff as fears of artificial intelligence disruption, global slowdown, and weak client spending continue to grow.