Shares of Infosys and Wipro, the country’s second largest and fourth-largest IT services companies, have remained under sustained selling pressure, with the decline deepening further in Tuesday’s trade.
During the intraday session, Infosys shares breached the ₹1,000 mark again, falling to the ₹980 level before seeing a mild recovery to close the session. The stock was last seen around these levels in October 2020.
Likewise, Wipro fell to its lowest level in six years after the stock lost another 3% in trade, falling to ₹156 apiece. Today’s losses have widened the stock’s September losses to 15%.
In July, Infosys broke the key ₹1,000 mark, but it recovered modestly in the following session, only to reverse all of its gains. The deepening losses are not limited to Infosys and Wipro, as the weakness has been sector-wide amid deteriorating investor sentiment towards tech stocks.
Domestic IT shares have come under selling pressure since the beginning of the year, with the sector witnessing its worst downturn since 2022 — and one of its weakest performances since the 2008 global financial crisis.
Several factors have weighed on the sector, including fears of AI-led disruption, muted earnings growth, weak management guidance, rising expectations of a US Federal Reserve rate hike, and sustained foreign institutional investor (FII) selling.
Together, these have made the Nifty IT index the worst-performing sectoral index of 2026.
Infosys m-cap drops over ₹2.4 lakh crore
Infosys shares have remained in a prolonged downtrend since February, losing nearly 38% of their value and closing six of the last eight months in the red.
The sharp decline has erased nearly ₹2.43 lakh crore from the company’s market capitalization in 2026, reducing its valuation to around ₹4 lakh crore at Tuesday’s close. At its peak, Infosys commanded a market capitalization of ₹8.37 lakh crore.
The steep correction has also resulted in significant mark-to-market losses for domestic mutual funds, one of the company’s largest shareholder groups.
So far in 2026, the stock has declined 37%, extending last year’s 14% fall and taking its cumulative decline over the past 18 months to 47%.
From its record high of ₹2,006, the stock has corrected more than 50% — a rare occurrence for a blue-chip company and one that reflects growing investor concerns over the long-term growth outlook for the IT services industry.
Wipro emerges as top laggard among tech stocks
The shares began their one-way fall in February 2025, which later turned into a prolonged correction, wiping out crores of investors’ wealth, after the stock had witnessed a sustained rally between 2016 and 2021.
Although the stock attempted a recovery on a few occasions this year, each rebound was met with renewed selling.
Over the last nine months, the stock ended five months in the red, with June recording the steepest monthly decline of 16.5%, followed by a 15% drop in September.
So far this year, the stock has lost 40% of its value, establishing itself as the worst performer among large-cap tech stocks. The sharp decline has also pushed the company’s market capitalization below ₹1.6 lakh crore.
The last time Wipro witnessed a comparable annual decline was in 2008 and 2022, when the stock plunged 55% and 45%, respectively.
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