Shares of leading Indian IT companies, including Tata Consultancy Services (TCS), Infosys, and HCL Technologies, experienced a significant downturn today, hitting fresh 52-week lows. The decline was attributed to renewed fears of AI disruption impacting the sector, following an announcement by OpenAI regarding a new company focused on AI deployment.
IT Stocks Lead Market Losses
The sentiment on Dalal Street turned bearish for IT shares, which topped the list of losers on both the BSE and NSE. The BSE IT index dropped 1048 points (3.67%) to Rs 27,485, while the Nifty IT index crashed 1094 points (3.73%) to Rs 28,234. Tech Mahindra, Wipro, Infosys, TCS, and HCL Technologies were among the top performers, with some falling as much as 4.44%.
Specifically, Infosys shares dipped to a 52-week low of Rs 1123.10, eventually closing 3.09% lower at Rs 1140.35. TCS also hit a yearly low of Rs 2283.05, ending the session 3.84% down at Rs 2300.65. HCL Technologies shares likewise fell to Rs 1142.65, closing 4.11% lower at Rs 1145.80.
Analyst Outlook on Key IT Players
Market analysts weighed in on the performance and future outlook for these IT giants.
HCL Technologies
Experts noted that HCL Technologies remains in a strong bearish trend after breaking multiple support zones. Immediate support is seen around Rs 1120, with major long-term support near Rs 1080. Resistance levels are placed at Rs 1200–1220. The future outlook is considered weak unless the stock reclaims and sustains above Rs 1260, advising caution for positional traders.
Tata Consultancy Services (TCS)
TCS is technically in a strong downtrend, trading below key moving averages. Immediate support for the stock is around the Rs 2,250–2,200 zone, while resistance is seen near Rs 2,450–2,500. Analysts suggest that unless TCS reclaims key moving averages, any rallies are likely to face selling pressure.
Infosys
Infosys is currently hovering near a crucial long-term support zone around Rs 1,120–1,150 after a sharp correction. The stock exhibits a weak technical structure with sustained bearish momentum. While the Relative Strength Index (RSI) indicates potential exhaustion in selling pressure, a confirmed reversal is not yet evident. A decisive breakdown below current support could lead to further declines towards Rs 1,050, with resistance for any pullback near Rs 1,250–1,300.
The market remains cautious as the impact of AI disruption continues to shape investor sentiment towards the technology sector.