Nifty IT Index Falls Nearly 2% as Persistent, Infosys Slide

Nifty IT index down nearly 2% intraday. Persistent -3.93%, LTM -2.42%, Infosys -2.24%, MphasiS -2%, Coforge -1.87%, Wipro -1.75%.

Updated: 31 Aug 2026 • 11:53 am

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Nifty IT Index Falls Nearly 2% as Persistent, Infosys Slide

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The Nifty IT index slipped nearly 2 percent in intraday trade, dragged down by sharp losses across major technology stocks. Persistent Systems led the decline, down 3.93 percent, followed by LTIMindtree at 2.42 percent and Infosys at 2.24 percent. Other IT majors including MphasiS, Coforge, Wipro, TCS, Tech Mahindra and HCL Tech also traded lower, reflecting broad-based weakness across the technology sector.

The Nifty IT index came under heavy selling pressure in intraday trade on Monday, slipping nearly 2 percent as almost every major constituent traded in the red. Persistent Systems was the steepest decliner, falling 3.93 percent, followed by LTIMindtree and Infosys, both down more than 2 percent.

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The weakness in the Nifty IT index mirrors a similar sell-off across Asian technology and semiconductor stocks earlier in the session, where hawkish comments from Federal Reserve Chair Kevin Warsh boosted global rate-hike expectations and triggered a broad reassessment of high-growth technology valuations.

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Nifty IT Index: Biggest Intraday Losers

A look at the top laggards on the Nifty IT index shows Persistent Systems down 3.93 percent at Rs 5,644.00 on heavy volumes of 324.59k shares, making it the single biggest drag on the index. LTIMindtree followed with a 2.42 percent decline to Rs 4,561.90, while Infosys slipped 2.24 percent to Rs 1,118.40 on volumes of nearly 1.96 million shares.

Other notable decliners weighing on the Nifty IT index included MphasiS, down 2 percent at Rs 2,405.90, and Coforge, which fell 1.87 percent to Rs 1,977.00 on volumes of 742.45k shares. Wipro, TCS, Tech Mahindra, HCL Tech and Oracle Financial Services all traded in negative territory as well, underscoring the breadth of the sell-off across the technology pack.

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What Is Driving Weakness in the Nifty IT Index

IT services stocks on the Nifty IT index are among the most sensitive to global risk sentiment and US technology valuations, given their heavy revenue exposure to American and European clients. Monday's decline in the Nifty IT index tracked a similar sell-off across Asian tech and chipmaking stocks, where hawkish remarks from Federal Reserve Chair Kevin Warsh boosted bets on a US rate hike and triggered a broad reassessment of growth-stock valuations globally.

Higher US interest rates typically compress the present value of future earnings for growth-oriented technology companies, a dynamic that flows through to Indian IT exporters on the Nifty IT index even though their underlying businesses are largely services-based rather than pure technology plays. Additionally, a stronger US dollar, often a byproduct of rising rate expectations, can create mixed effects for IT exporters, benefiting reported rupee revenues but sometimes coinciding with softer discretionary technology spending from clients.

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Nifty IT Index: Investor Takeaways

With the Nifty IT index down nearly 2 percent and volumes elevated in several constituents, including Persistent Systems and Coforge, investors should watch whether this reflects a broader rotation away from richly valued IT stocks or a more short-lived reaction to the day's global macro headlines. Tracking commentary from US technology bellwethers and Federal Reserve officials in the coming days will help clarify the durability of this pullback.

Long-term investors in IT services stocks should focus on company-specific fundamentals such as deal pipeline strength, margin trends and client budget commentary during upcoming earnings seasons, rather than reacting solely to a single session's move in the Nifty IT index.

Investments in the securities market are subject to market risks. Read all related documents carefully before investing. This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Uniresearch Global Pvt Ltd is a SEBI Registered Research Analyst, Registration Number INH000013776. Uniresearch Global Pvt Ltd is a subsidiary of Univest Communication Technologies Private Limited.

FAQs

Why did the Nifty IT index fall today?

Ans. The Nifty IT index fell nearly 2 percent intraday amid broad-based weakness in technology stocks, coinciding with hawkish Fed commentary that boosted global rate-hike expectations and pressured growth-stock valuations.

Which stock led the decline in the Nifty IT index?

Ans. Persistent Systems was the biggest decliner, falling 3.93 percent, making it the top loser on the Nifty IT index.

What other IT stocks fell sharply today?

Ans. LTIMindtree fell 2.42 percent and Infosys declined 2.24 percent, alongside losses in MphasiS, Coforge, Wipro, TCS, Tech Mahindra and HCL Tech.

Why is the Nifty IT index sensitive to US interest rate expectations?

Ans. Higher US rates compress the present value of future earnings for growth-oriented technology companies, a dynamic that flows through to Indian IT exporters given their heavy exposure to American and European clients.

Does a stronger US dollar help or hurt Nifty IT index stocks?

Ans. It can have mixed effects, benefiting reported rupee revenues for IT exporters while sometimes coinciding with softer discretionary technology spending from overseas clients.