Major Sell-Off Hits Indian IT Sector, Wiping Out ₹1.3 Lakh Crore
The Indian information technology sector experienced a dramatic downturn on February 12, 2026, as a wave of selling pressure led to substantial losses across major stocks. The Nifty IT index plummeted by as much as 4.6%, reaching an intraday low of 33,471.55 points, making it the worst-performing sectoral index for the day. This sharp decline resulted in the erasure of more than ₹1.3 lakh crore from the market capitalisation of IT companies during the trading session.
Global Tech Sell-Off and AI Concerns Drive the Decline
The sell-off was triggered by a combination of factors, primarily a sharp sell-off in global technology stocks and renewed investor concerns about disruptions caused by artificial intelligence-led start-ups. Growing anxiety among investors centers on the potential for rapid advances in AI to negatively impact pricing power, deal wins, and long-term earnings visibility for traditional software services firms. This has led to sustained pressure on the sector, with the Nifty IT index already falling approximately 11% in 2026, following a 13% decline in calendar year 2025.
Over the past three months, the index has dropped around 9%, and in the last month alone, it has fallen close to 12%, highlighting the intensity and persistence of the sell-off.
Top Losers in the IT Index
At the time of reporting, several key players in the IT sector recorded significant losses:
- Coforge was the top loser, down 5.5%.
- LTI Mindtree also shed over 5%.
- Other major companies like Wipro, Tech Mahindra, Infosys, Persistent Systems, and TCS each lost over 4%.
- Mphasis, HCL Tech, and L&T Tech saw declines ranging between 2.5% and 4%.
This widespread downturn reflects broader market sentiment and the challenges facing the IT industry as it navigates technological shifts and economic uncertainties.
