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  5. Bloodbath in IT stocks: NIFTY IT tanks over 10% in 2 sessions; why is the rout intensifying?

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Bloodbath in IT stocks: NIFTY IT tanks over 10% in 2 sessions; why is the rout intensifying?

Swati Verma
By Swati Verma

3 min read | Updated on February 13, 2026, 10:19 IST

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SUMMARY

IT stocks tank: The NIFTY IT index on Thursday tumbled as much as 5.24% to hit the day's low of 31,422.60 levels on the NSE in the early trade.

Stock list

INFY
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WIPRO
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LTM
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IT stocks tumble, Feb 13

Taking into consideration today's low level, the IT index has plummeted 10.46% from the February 11 closing level of 35,095.15. | Image: Shutterstock

IT stocks tumble: There was no respite for the bulls in the Indian IT space as stocks tumbled once again on Friday, February 13, amid a rout in tech and software stocks in the US market in the overnight trade.
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IT stocks are seeing intense selling pressure owing to fears that new AI startups could disrupt traditional outsourcing models, erode pricing power, and displace legacy service providers.

The NIFTY IT index on Friday tumbled as much as 5.24% to hit the day's low of 31,422.60 levels on the NSE in the early trade.

Taking into account today's low level, the IT index has plummeted 10.46% from the February 11 closing level of 35,095.15.

On Thursday, Wall Street closed in the red as investors grew increasingly concerned about the potential downsides of the artificial intelligence boom, including the risk of disruption to established business models and a possible rise in unemployment.

The Dow Jones Industrial Average fell 669.42 points, or 1.34%, to settle at 49,451.98, dragged lower by Cisco Systems, which tumbled 12% after issuing weaker-than-expected guidance for the current quarter. The S&P 500 declined 1.57% to close at 6,832.76, while the Nasdaq Composite dropped 2.03% to finish at 22,597.15.

A report by CNBC said that some segments of the stock market have come under pressure this year following the launch of AI tools that could replicate parts of their business models — or at least chip away at their margins.

Financial stocks, including Morgan Stanley, faced selling pressure amid concerns that AI could disrupt wealth management operations. Meanwhile, shares of trucking and logistics firms such as C.H. Robinson plunged 14% on fears that AI-driven efficiencies in freight operations could weigh on certain revenue streams.

The anxiety around AI disruption also spilled over into the real estate sector, dragging down stocks like CBRE and SL Green Realty, amid concerns that higher unemployment could dampen demand for office space, the CNBC report added.

What Vishal Sikka says

Amid growing concerns over AI-led disruption, Vishal Sikka said in an interaction with CNBC-TV18 that the impact of artificial intelligence on the services sector is not uniform, as change tends to move at the pace of the slowest link. He noted that generative AI demonstrates 20–30 times productivity gains, but a significant gap still exists between its full potential and the current on-ground reality.

The founder and CEO of Vianai and former CEO of Infosys added that Indian IT firms need to shift from managing the known to creating the unknown.

How IT stocks are faring on February 13

When last seen, the NIFTY IT index was trading 4.21% lower at 31,764.80 levels. All 10 constituents were trading in the red.

Among the large-cap IT firms, Infosys was down around 5.5%, while TCS was trading nearly 4.5% lower. LTIMindtree was trading over 3% lower, while HCL Technologies traded over 4% lower. Tech Mahindra shares were down 2.55%. Wipro was trading 3.42% lower on the NSE.

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About The Author

Swati Verma
Swati Verma is a business journalist with 11 years of experience. She writes on equities, corporate earnings, sectoral trends, and industry outlook, among others. At Upstox, she leads financial markets coverage.

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