The Nifty IT index tanked 5.35% to 28,512.95. Among major stocks, Infosys declined 6.92%, Mphasis fell 6.02%, Coforge dropped 5.98%, and Persistent Systems slipped 5.74%. L&T Technology Services was down 5.00%, while TCS fell 4.91%, Tech Mahindra declined 4.67%, HCLTech dropped 4.05%, and Wipro slipped 1.78%.
Infosys guided for revenue growth of 1.5%-3.5% in constant currency terms for FY27, lower than its earlier guidance of 3.0%-3.5%, while maintaining its operating margin outlook at 20%-22%.
Adding to the concerns, the total contract value (TCV) of large deal wins fell to $3.2 billion in Q4 FY26 from $4.8 billion in Q3 FY26, indicating softer deal conversion and pipeline visibility.
The sector's weakness also reflects a slowdown in global tech spending, as clients across key markets such as the US and Europe remain cautious on discretionary outlays.
At the same time, the rise of artificial intelligence is intensifying pricing pressure, forcing companies to adapt to evolving cost dynamics and heightened competition.
Execution timelines are stretching, with delays in client decisions and slower onboarding of large deals weighing on near-term revenue visibility.
Adding to the pressure, geopolitical tensions, particularly in West Asia, have heightened uncertainty in global markets, further dampening investor sentiment.