Infosys and Wipro Shares Hit Six-Year Lows Amid IT Sector Sell-Off

Shares of Infosys and Wipro, two of India's major IT services providers, have plunged to levels unseen since 2020, reflecting ongoing challenges within the technology sector. On Tuesday, Infosys shares dropped below the ₹1,000 mark, touching ₹980 intraday before a slight recovery. This marks the first time the stock has traded at these levels in nearly six years. Similarly, Wipro's stock declined to ₹156, its lowest point in six years, slipping another 3% on the day and deepening its September losses to 15%.

Infosys had briefly crossed the ₹1,000 threshold in July, but the gains were short-lived as the stock reversed direction soon after. The downward pressure extends beyond these two companies, with the entire domestic IT sector experiencing a broad sell-off. This trend has resulted in the worst performance for IT stocks since 2022 and ranks among the weakest downturns since the global financial crisis of 2008.

The sector's decline is linked to several interrelated factors. Investors are concerned about potential disruption from artificial intelligence technologies, which could reshape traditional IT service models. Earnings growth across the sector has been muted, and many companies have issued cautious guidance about future prospects. In addition, expectations of further interest rate hikes by the US Federal Reserve have dampened sentiment. Persistent selling by foreign institutional investors has added to the pressure, collectively driving the Nifty IT index to become the poorest-performing sectoral index in 2026.

Infosys has been particularly affected, with its share price falling nearly 38% since February. This prolonged sell-off has erased approximately ₹2.43 lakh crore from the company's market capitalization, which now stands around ₹4 lakh crore. At its peak, Infosys was valued at ₹8.37 lakh crore. The stock's decline has also caused significant mark-to-market losses for domestic mutual funds, which are among its largest shareholders. Over the past 18 months, the stock has lost 47% of its value, dropping from a high of ₹2,006 to its current levels, a notable correction for a blue-chip company.

Wipro has fared worse among large-cap technology stocks, emerging as the sector's biggest laggard. The stock began its downward trajectory in early 2025 after several years of strong gains between 2016 and 2021. Despite occasional attempts at recovery, renewed selling pressure has kept the stock trending downward. Over the last nine months, Wipro has posted losses in five months, with June and September seeing particularly sharp declines of 16.5% and 15%, respectively. Year-to-date, the stock has dropped 40%, pushing the company's market capitalization below ₹1.6 lakh crore. The last comparable annual declines occurred in 2008 and 2022, when the stock fell by 55% and 45%.

This sell-off in Indian IT stocks reflects broader market concerns about the sector's ability to sustain growth amid evolving technology trends and economic uncertainties. The IT services industry has been a major contributor to India's economic growth and export revenue over the past two decades. However, shifts like AI adoption, geopolitical tensions, and changing global demand patterns have introduced fresh challenges. Investors are closely watching how companies like Infosys and Wipro adapt their strategies to maintain competitiveness.

Market analysts advise investors to consult with certified financial experts before making investment decisions, given the current volatility. The developments underscore the need for cautious optimism as the sector seeks to navigate a complex operating environment in 2026 and beyond.

About the Author
Ksheera Sagar is a Market Research Analyst at LiveMint, specializing in stocks, commodities, and financial markets. With over a decade of experience, including time at J.P. Morgan, he combines data-driven analysis with clear storytelling to explain complex financial trends. Outside of work, Ksheera enjoys playing the piano and exploring new destinations, maintaining a strong interest in global market dynamics.