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IT stocks crash: Coforge, Tech Mahindra, Infosys, others drag Nifty IT down nearly 4%; what investors should know
4 min read | Updated on September 09, 2026, 10:18 IST
SUMMARY
IT stocks crashed after the opening bell on Wednesday, September 9, as Coforge led the laggards due to its Chairman's resignation move amid concerns raised during an internal audit review of the firm.
Nifty IT index declined 3.6% or 1,103 points in a single day to touch an early market low of 28,779.80 on Wednesday, September 9.
IT stocks like Coforge, Tech Mahindra, Mphasis, Infosys, TCS, among others crashed after the opening bell on Wednesday, September 9, dragging down Nifty IT nearly 4% intraday as investors focus on the recent resignation of O.P. Bhatt amid concerns raised during an internal audit review at Coforge.
NSE data showed that the sectoral benchmark Nifty IT index declined 3.6% or 1,103 points in a single day to touch an early market low of 28,779.80 points on Wednesday’s market, in comparison to 29,883.45 points at the previous equity market close.
After the drop, the benchmark index recovered some of its losses, trading 3% lower at 28,980.15 points during the trading session on September 9.
Stocks like Coforge, Infosys, Tech Mahindra, and HCL Tech were among the top laggards on the Nifty IT index as of the morning market hours.
Apart from the corporate governance shock in the IT sector, equity investors were also focused on the weak global market cues, with muted sentiment for high-growth stocks amid crude oil prices nearing $100 per barrel and selling pressure from the Asian markets.
IT stocks in focus today
| Company name | Current price | Intraday returns | 5-day returns |
|---|---|---|---|
| Coforge | ₹1,819 | -8.6% | -7.4% |
| Infosys | ₹1,047 | -4.3% | -8.1% |
| Tech Mahindra | ₹1,512 | -3.5% | -6.8% |
| HCL Tech | ₹1,241 | -3.7% | -6.8% |
| Persistent Systems | ₹5,433 | -2.9% | -4.5% |
| TCS | ₹2,207 | -2.7% | -5.9% |
| Mphasis | ₹2,311 | -2.8% | -6.7% |
| LTM | ₹4,430 | -3.1% | -3.9% |
| Wipro | ₹168 | -2.9% | -4.8% |
| OFSS | ₹11,690 | -1.2% | -3.8% |
Why did Coforge Chairman resign?
Before the market opened on Wednesday, Coforge informed the stock exchanges that the IT company’s Non-Executive Independent Director and Chairperson, O.P. Bhatt, has tendered his resignation on September 8.
As per the NSE filing, O.P. Bhatt’s resignation is effective immediately from Wednesday, September 9.
In a letter to the board, Bhatt clarified that his resignation comes due to the disagreement towards his characteristics of good faith actions in the recent board evaluation process.
“I believe that continuing on the Board while there remains a disagreement considering the characteristics of my good faith actions in the board evaluation process would not be conducive to the effective functioning of the board,” Coforge informed the stock exchanges.
This resignation comes after concerns were raised during an internal audit review of the board evaluation process, which included disclosure of certain material information relating to the Board Evaluation Report and the Chairperson’s performance.
Before the resignation move, Coforge’s board had set out its concerns and asked O.P. Bhatt to provide an explanation in relation to the matters identified in the review to which the Chairperson provided his response to the matters raised.
“The board was in the process of considering and evaluating his explanation and had not taken any final decision in relation to the matters raised with him,” said Coforge in an official statement.
Coforge’s board has decided to appoint Vivek Sharma, a non-executive independent director of the company, as the interim Chairperson till January 31, 2027.
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