{"id":15013,"date":"2026-06-11T09:16:34","date_gmt":"2026-06-11T09:16:34","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/finance\/nifty-it-slides-global-tech-selloff\/"},"modified":"2026-06-12T09:59:10","modified_gmt":"2026-06-12T09:59:10","slug":"nifty-it-slides-global-tech-selloff","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/nifty-it-slides-global-tech-selloff\/","title":{"rendered":"Nifty IT index drops as global tech selloff, US inflation weigh"},"content":{"rendered":"
\"\"<\/figure>\n\n\n

Indian IT stocks fell sharply on Thursday, dragging the Nifty IT index<\/strong> down about 2.7%<\/strong> to an intraday low of 27,519<\/strong>, as a global technology selloff and hotter US inflation data stoked worries over prolonged high interest rates and future client spending. The index has now lost more than 5%<\/strong> so far this week, wiping out roughly \u20b950,000 crore<\/strong> in market capitalisation within minutes in intraday trade.<\/p>\n\n\n\n

Market overview<\/h2>\n\n\n\n
Index \/ Segment<\/strong><\/th>Session move<\/strong><\/th>Comments<\/strong><\/th><\/tr><\/thead>
Nifty IT index<\/strong><\/td>Down about 2.7%<\/strong> intraday; over 5%<\/strong> lower this week<\/td>Hit low of 27,519<\/strong>; among worst sectoral performers.<\/td><\/tr>
Nifty 50<\/td>Down around 0.5%<\/strong> intraday<\/td>Broader market fall milder than IT-specific decline.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
    \n
  • Nifty IT underperformed the headline index despite a relatively modest Nifty 50 decline.<\/li>\n\n\n\n
  • Around \u20b950,000 crore<\/strong> in IT sector market value erased within about 15 minutes.<\/li>\n\n\n\n
  • Sector weakness concentrated in large and mid tier IT services exporters.<\/li>\n<\/ul>\n\n\n\n

    Key movers in IT<\/h2>\n\n\n\n
    Top Gainers<\/strong><\/th>Sector<\/strong><\/th>Notable Factor<\/strong><\/th><\/tr><\/thead>
    None significant<\/em><\/td>IT<\/td>Session dominated by broad-based declines across constituents.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
    Top Losers<\/strong><\/th>Stock<\/strong><\/th>Sector<\/strong><\/th>Notable Factor<\/strong><\/th><\/tr><\/thead>
    1<\/td>HCL Technologies<\/strong><\/td>IT services<\/td>Fell about 3.5%<\/strong>, biggest loser on Nifty IT.<\/td><\/tr>
    2<\/td>Infosys<\/strong><\/td>IT services<\/td>Declined around 3%<\/strong>, weighed on index.<\/td><\/tr>
    3<\/td>LTIMindtree<\/strong><\/td>IT services<\/td>Dropped close to 3%<\/strong> in intraday trade.<\/td><\/tr>
    4<\/td>Mphasis<\/strong><\/td>IT services<\/td>Lost more than 2%<\/strong> among mid tier names.<\/td><\/tr>
    5<\/td>Persistent Systems<\/strong><\/td>IT services<\/td>Fell over 2%<\/strong>, tracking sector weakness.<\/td><\/tr>
    6<\/td>TCS<\/strong><\/td>IT services<\/td>Declined over 1.5%<\/strong>, contributed to market cap erosion.<\/td><\/tr>
    7<\/td>Coforge<\/strong><\/td>IT services<\/td>Slipped over 1.5%<\/strong>.<\/td><\/tr>
    8<\/td>Tech Mahindra<\/strong><\/td>IT services<\/td>Dropped over 1.5%<\/strong>.<\/td><\/tr>
    9<\/td>Wipro<\/strong><\/td>IT services<\/td>Lost around 1%<\/strong>.<\/td><\/tr>
    10<\/td>L&T Technology Services<\/strong><\/td>Engineering R&D<\/td>Down about 1%<\/strong>.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
      \n
    • Selling pressure was broad based across large caps like Infosys<\/strong>, TCS<\/strong>, HCLTech<\/strong> and mid caps.<\/li>\n\n\n\n
    • Heavyweights amplified the index fall given their high weight in Nifty IT.<\/li>\n<\/ul>\n\n\n\n

      Global cues and macro drivers<\/h2>\n\n\n\n
      Market \/ Asset<\/strong><\/th>Movement<\/strong><\/th>Notes<\/strong><\/th><\/tr><\/thead>
      Nasdaq Composite<\/strong><\/td>Down about 2%<\/strong><\/td>Tech and AI related stocks came under pressure.<\/td><\/tr>
      S&P 500<\/strong><\/td>Down around 1.6%<\/strong><\/td>Weakness led by technology counters.<\/td><\/tr>
      Oracle (extended trade)<\/strong><\/td>Fell about 8.9%<\/strong><\/td>Higher capex guidance and large planned fundraise hit sentiment.<\/td><\/tr>
      US CPI (May, YoY)<\/strong><\/td>4.2%<\/strong>, vs 3.8%<\/strong> in April<\/td>Fastest rise since April 2023, per US Labor Department data.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
        \n
      • Global tech indices fell overnight, setting a weak tone for Indian IT at the open.<\/li>\n\n\n\n
      • US inflation accelerated to 4.2%<\/strong> year on year in May, driven by higher energy prices.<\/li>\n\n\n\n
      • Monthly US CPI rose 0.5%<\/strong> after a 0.6%<\/strong> increase in April.<\/li>\n\n\n\n
      • Higher inflation reinforced expectations that the US Federal Reserve may keep rates elevated for longer.<\/li>\n\n\n\n
      • Traders priced in over a 70%<\/strong> probability of a US rate hike by December, per derivatives market indicators.<\/li>\n\n\n\n
      • Oracle\u2019s plan to raise nearly $40 billion<\/strong> via debt and equity for AI infrastructure raised concerns on stretched tech valuations and leverage.<\/li>\n<\/ul>\n\n\n\n

        Sectoral and structural concerns<\/h2>\n\n\n\n
        Sector \/ Theme<\/strong><\/th>Direction (approx.)<\/strong><\/th>Key Drivers<\/strong><\/th><\/tr><\/thead>
        Indian IT services<\/strong><\/td>Down 2% to 3.5%<\/strong> across majors<\/td>US inflation, global tech selloff, AI disruption worries.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
          \n
        • Indian IT firms derive a large share of revenue from US clients.<\/li>\n\n\n\n
        • Higher US rates and inflation are seen as negative for discretionary tech spending.<\/li>\n\n\n\n
        • Recent advances in artificial intelligence have raised questions about traditional IT services models.<\/li>\n\n\n\n
        • Several IT stocks have fallen as much as 11%<\/strong> over the past month.<\/li>\n\n\n\n
        • Earlier AI related selloffs in the sector saw only brief recoveries before weakness resumed.<\/li>\n<\/ul>\n\n\n\n

          Technical and sentiment snapshot<\/h2>\n\n\n\n
          Statistic<\/strong><\/th>Value \/ Change<\/strong><\/th>Context<\/strong><\/th><\/tr><\/thead>
          Nifty IT weekly move<\/strong><\/td>Down more than 5%<\/strong><\/td>Reflects sustained selling beyond a single session.<\/td><\/tr>
          Nifty IT intraday low<\/td>27,519<\/strong><\/td>Key support zone tested amid heavy volume.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
            \n
          • The index drop of about 2.7%<\/strong> in the session came with sharp, fast selling.<\/li>\n\n\n\n
          • HSBC, in a recent sector note, highlighted a cautious stance on Indian IT.<\/li>\n\n\n\n
          • Market participants remain sensitive to US macro data and global tech flows for near term direction.<\/li>\n<\/ul>\n\n\n\n

            Outlook linked to US markets<\/h2>\n\n\n\n
              \n
            • Indian IT stocks are expected to track US technology indices closely given revenue exposure.<\/li>\n\n\n\n
            • Persistent inflation and geopolitical tensions in the Middle East add to risk aversion.<\/li>\n\n\n\n
            • Stable but firm US dollar levels reflect safe haven demand, affecting risk assets.<\/li>\n\n\n\n
            • Any shift in US Federal Reserve guidance on rates will be closely watched by IT investors.<\/li>\n<\/ul>\n\n\n\n

              FAQs<\/h2>\n\n\n\n

              Q: Why did the Nifty IT index fall more than the Nifty 50 today?<\/strong><\/p>\n\n\n\n

                \n
              • Nifty IT dropped about 2.7%<\/strong> versus roughly 0.5%<\/strong> for Nifty 50, as global tech weakness, US inflation data and sector specific worries around AI and US client spending hit IT exporters harder than the broader market.<\/li>\n<\/ul>\n\n\n\n

                Q: Which Indian IT stocks were hit the most in this session?<\/strong><\/p>\n\n\n\n

                  \n
                • HCL Technologies<\/strong> fell about 3.5%<\/strong>, while Infosys<\/strong> and LTIMindtree<\/strong> slid around 3%<\/strong> each. Mphasis<\/strong> and Persistent Systems<\/strong> dropped over 2%<\/strong>, and TCS<\/strong>, Coforge<\/strong> and Tech Mahindra<\/strong> lost more than 1.5%<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                  Q: How does US inflation impact Indian IT companies?<\/strong><\/p>\n\n\n\n

                    \n
                  • Higher US inflation and the prospect of prolonged high interest rates can curb discretionary technology budgets of US clients, which supply a large portion of revenue for Indian IT firms, making their earnings outlook more vulnerable.<\/li>\n<\/ul>\n\n\n\n

                    Frequently Asked Questions<\/h2>\n\n\n\n

                    Why did the Nifty IT index fall more than the Nifty 50 today?<\/h3>\n\n\n\n

                    Nifty IT slid about 2.7% versus roughly 0.5% for Nifty 50 because global tech weakness, hotter US inflation data and worries about US client spending and AI disruption hit IT exporters harder than the broader market.<\/p>\n\n\n\n

                    Which Indian IT stocks were the biggest losers in this session?<\/h3>\n\n\n\n

                    HCL Technologies fell about 3.5%, Infosys and LTIMindtree dropped around 3% each, Mphasis and Persistent Systems lost over 2%, while TCS, Coforge and Tech Mahindra declined more than 1.5%.<\/p>\n\n\n\n

                    What role did US inflation data play in the IT selloff?<\/h3>\n\n\n\n

                    US CPI rose 4.2% year on year in May, its fastest pace since April 2023, reinforcing expectations of prolonged high Federal Reserve rates, which in turn raised concerns about future US tech spending that Indian IT firms rely on.<\/p>\n","protected":false},"excerpt":{"rendered":"

                    Nifty IT fell to 27,519, erasing about Rs 50,000 crore in minutes as Infosys, TCS and HCLTech slid amid US inflation worries and global tech weakness.<\/p>\n","protected":false},"author":15,"featured_media":15049,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_ayudawp_aiss_exclude":false,"_ayudawp_aiss_summary":"Indian IT stocks fell sharply on Thursday, dragging the Nifty IT index down about 2.7% to an intraday low of 27,519, as a global technology selloff and hotter US inflation data stoked worries over prolonged high interest rates and future client spending. Q: Why did the Nifty IT index fall more than the Nifty 50 today?. Nifty IT dropped about 2.7% versus roughly 0.5% for Nifty 50, as global tech weakness, US inflation data and sector specific worries around AI and US client spending hit IT exporters harder than the broader market.","_ayudawp_aiss_summary_provider":"extractive","_ayudawp_aiss_summary_hash":"86cf31f12bf596ddd233e277f7f2c8ac3080aeeb","footnotes":""},"categories":[512],"tags":[],"class_list":["post-15013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates"],"blocksy_meta":[],"uagb_featured_image_src":{"full":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops-150x150.png",150,150,true],"medium":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops-300x200.png",300,200,true],"medium_large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"large":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"1536x1536":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"2048x2048":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"web-stories-poster-portrait":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops.png",576,384,false],"web-stories-publisher-logo":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops-96x96.png",96,96,true],"web-stories-thumbnail":["https:\/\/lemonn.co.in\/blog\/wp-content\/uploads\/2026\/06\/Nifty-IT-index-drops-150x100.png",150,100,true]},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/yudh\/"},"uagb_comment_info":0,"uagb_excerpt":"Nifty IT fell to 27,519, erasing about Rs 50,000 crore in minutes as Infosys, TCS and HCLTech slid amid US inflation worries and global tech weakness.","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/15013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=15013"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/15013\/revisions"}],"predecessor-version":[{"id":15052,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/15013\/revisions\/15052"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/15049"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=15013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=15013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=15013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}