India’s technology pack witnessed a steep correction, with the Nifty IT index tumbling over 1% to hover near a three-year low. The sharp decline stood in stark contrast to the broader market’s relatively muted performance, underlining deep-rooted sector-specific concerns rather than a broad-based sell-off.

Over the past year, the Nifty IT index has remained under sustained pressure, declining 20.62%, with losses deepening to 20.78% over the last six months. The weakness has accelerated further in the near term, with the index falling 24.63% in just the past three months, highlighting a sharp deterioration in sentiment and continued selling momentum across the IT sector.

Heavyweights such as Infosys, TCS, and Wipro led the decline, dominating the list of top losers on the Nifty 50. The synchronized fall across frontline IT names signals a structural shift in sentiment toward the sector.

Why Are IT Stocks Under Pressure?

Technical Analysis

The Nifty IT index remains in a firm downtrend, trading near 28,743.30 and well below its 50-day SMA (~34,546), indicating weak technical structure. The formation of lower highs and lows reinforces bearish momentum, while RSI around 15–20 signals oversold conditions. Immediate support is seen at 26,240–21,750, with resistance near 31,300-33,900. The overall outlook remains negative unless key resistance levels are decisively reclaimed.

Conclusion

The Nifty IT index is undergoing a pronounced correction driven by global demand slowdown, macroeconomic pressures, and a structural reset in growth expectations. While technical indicators reflect continued weakness, oversold conditions may offer short-term relief. However, a sustained recovery will depend on revival in global tech spending and the index reclaiming key resistance levels, signaling a shift in sentiment.