๐ Market Shock in the IT Sector
13-feb-2026, 6:00 pm The Nifty IT plunged nearly 5% in todayโs trading session, triggering panic across the technology space and dragging frontline IT stocks sharply lower. The steep decline has wiped out significant investor wealth in just a few hours, making it one of the worst sessions for the sector in recent months.
Heavyweights like Infosys, Tata Consultancy Services, and Wipro were among the biggest losers, with investors rushing to trim exposure amid mounting concerns.
So what exactly is driving this sharp selloff? Here are the three big reasons tech stocks are under intense pressure today.
1๏ธโฃ Weak Global Cues and US Tech Selloff
One of the primary triggers behind todayโs crash is weak global sentiment, particularly in the US technology sector.
Indian IT companies derive a significant portion of their revenue from North America. Overnight weakness in US tech stocks sparked fears of reduced tech spending by global clients. Concerns around slowing enterprise demand, cautious IT budgets, and macroeconomic uncertainty are weighing heavily on investor confidence.
When US markets sneeze, Indian IT often catches a cold โ and today appears to be a classic case of global ripple effects impacting domestic markets.
2๏ธโฃ Rupee Volatility and Margin Concerns
Currency fluctuations are another major factor adding to investor anxiety.
A volatile rupee impacts earnings visibility for IT exporters. While a weaker rupee can sometimes boost margins, sudden swings create uncertainty around hedging positions and profitability projections.
Additionally, rising wage costs and pricing pressure from global clients are squeezing operating margins. Analysts have recently flagged that revenue growth for large-cap IT firms could remain muted in the near term, which is making investors reassess valuations.
High valuations combined with slowing growth often lead to sharp corrections โ something the market is currently witnessing.
3๏ธโฃ FII Selling and Profit Booking
Foreign Institutional Investors (FIIs) have been trimming positions in rate-sensitive and export-oriented sectors. IT stocks, which saw strong rallies in previous quarters, are now facing profit booking.
After a period of optimism around AI-driven growth and digital transformation deals, the market is recalibrating expectations. Investors are shifting toward sectors perceived as more domestically driven or defensively positioned.
The result? Heavy sell orders, lower volumes on the buy side, and accelerated declines across the IT index.
๐ Impact on Major Stocks
Hereโs how key players were affected during the session:
Infosys: Sharp intraday fall amid global demand concerns
TCS: Pressure from cautious guidance expectations
Wipro: Continued struggle with revenue growth visibility
Mid-cap IT stocks also saw deeper cuts, indicating broad-based sector weakness rather than isolated stock-specific issues.
๐ก Is This a Short-Term Correction or Trend Reversal?
Market experts suggest that while todayโs fall looks dramatic, it may be more sentiment-driven than structural.
Long-term fundamentals of Indian IT remain intact:
Strong order books
Leadership in digital transformation services
Growing AI and automation capabilities
Diversified global client base
However, near-term volatility could persist if global macroeconomic signals remain uncertain.
๐ What Should Investors Do?
For short-term traders, volatility may continue in the coming sessions. Monitoring global tech cues and currency movements will be critical.
For long-term investors:
Corrections often create accumulation opportunities.
Focus on companies with strong balance sheets and diversified revenue streams.
Avoid panic-driven decisions based on single-session declines.
As always, risk management and portfolio allocation discipline are key during sharp market swings.
๐ Conclusion
The 5% plunge in the Nifty IT index reflects a combination of global headwinds, margin concerns, and institutional selling pressure. While the immediate sentiment appears negative, structural growth drivers for Indiaโs technology sector remain in place.
Whether this is a temporary pullback or the beginning of a deeper correction will largely depend on global economic signals and upcoming earnings guidance.
Investors would do well to stay informed, avoid emotional reactions, and watch how the broader market stabilizes in the coming days
