Indian IT stocks traded lower in early trade on Wednesday as weak global cues weighed on investor sentiment following a sharp 25% decline in IBM shares overnight. The selloff sparked concerns over enterprise technology spending, leading to broad weakness across the domestic IT sector.
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The Nifty IT index fell nearly 0.7% to 28,532.55 in morning trade, with most frontline technology stocks trading in the red. Infosys emerged as the biggest loser among large-cap IT companies, declining 1.22%, followed by Wipro, which slipped 0.54%. Tata Consultancy Services (TCS) fell 0.43%, Tech Mahindra dropped 0.49%, and Persistent Systems edged lower by 0.21%.
HCL Technologies was the only major IT stock to buck the trend, gaining 0.76% in early trading, while LTIMindtree remained largely unchanged.
The decline followed IBM’s disappointing revenue outlook, which highlighted changing enterprise spending priorities. The US technology giant indicated that businesses are increasingly directing investments toward AI infrastructure, including servers, networking equipment, and memory, while remaining cautious about software and consulting expenditure.
IBM’s weak guidance triggered a broader selloff in global technology stocks and also weighed on the American Depositary Receipts (ADRs) of Indian IT firms such as Infosys and Wipro, adding to negative market sentiment.
Investors are now closely watching the upcoming quarterly earnings season for Indian IT companies. Market participants will focus on management commentary related to client spending trends, deal wins, demand for AI-driven services, margin outlook, and revenue growth prospects to gauge the sector’s near-term direction.