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IT stocks fall: TCS, Infosys, Mphasis, others drag Nifty IT down 2%; check key factors behind today's drop
5 min read | Updated on August 17, 2026, 11:59 IST
SUMMARY
IT stocks like TCS, Infosys, Mphasis, Persistent, among others, dragged Nifty IT down 2% on Monday, August 17, as investors focused on several factors amid weak market sentiment.
Nifty IT index tumbled down 1.83% to its intraday low of 30,783.50 points on Monday, August 17.
IT stocks like TCS, Infosys, LTM, and Mphasis, among others, dragged down the benchmark sectoral index, Nifty IT, by nearly 2% on Monday, August 17, as investors focused on several factors, including a weaker US dollar rate, geopolitical concerns, and weak momentum for high-growth sectors.
NSE data showed that the benchmark Nifty IT index tumbled down 1.83% to its intraday low of 30,783.50 points on Monday’s market, compared to 31,357.75 points at the previous equity market close on Friday last week.
On the mid-cap and small-cap front, subdued sentiment of investors weighed down the Nifty Midsmall IT & Telecom index, declining 1.02% or around 103 points to touch its intraday low of 9,975.35 points on August 17, in comparison to 10,079 points at last week’s market close.
Stock market investors were also monitoring the momentum from tech stocks in the Asian markets, with Singapore’s FTSE trading lower, while others like Nikkei 225 and Shanghai Composite were trading marginally higher amid geopolitical risk sentiment.
Large-cap IT stocks in focus today
| Company Name | Current Market Price (CMP) | Intraday returns | 1-month returns | YTD returns |
|---|---|---|---|---|
| Infosys | ₹1,142 | -2.3% | 4.2% | -29.8% |
| TCS | ₹2,313 | -2.1% | 1.9% | -28.3% |
| LTM | ₹4,640 | -2.3% | 23.8% | -24% |
| HCL Tech | ₹1,334 | -1.9% | 10.8% | -18.3% |
| Wipro | ₹181.51 | -1.4% | 3.1% | -32% |
| Tech Mahindra | ₹1,613 | -1.5% | 2.5% | 0.3% |
Mid-cap & small-cap IT stocks in focus
| Company Name | Current Market Price (CMP) | Intraday returns | 1-month returns | YTD returns |
|---|---|---|---|---|
| Mphasis | ₹2,489 | -2.3% | 3.9% | -12% |
| Persistent Systems | ₹5,545.50 | -0.7% | 6.9% | -11.7% |
| OFSS | ₹11,766 | -0.7% | Nil | 53% |
| Coforge | ₹1,840 | -0.6% | 19.6% | 8.9% |
| Cyient | ₹849 | -2.19% | -0.5% | -23.4% |
| Tata Technologies | ₹848.10 | -2.7% | 12% | 31.9% |
Key factors: Why are IT stocks falling today?
Investing.com data showed that the Indian currency was trading 0.23% stronger at 95.664 against the benchmark US dollar, in comparison to 95.44 at the previous currency market close.
With the majority of the Indian IT company clients being based out of the United States, a lower dollar rate translates to a direct impact on company margins, as the revenues move based on the dollar appreciation or depreciation in the market.
The exchange data also showed that the US dollar spot index was trading 0.18% weaker during the trading session on Monday at 99.375, compared to 99.559 apiece at the previous market close.
According to a Bloomberg report, the US dollar was falling on Monday against its peers as the softer-than-expected US economic data reduced the potential for the US Federal Reserve to increase its benchmark interest rates at the September 2026 meeting.
On Monday, the deadline for the peace negotiations ended, and so far no plans or updates have been announced for the conflict in West Asia.
As per the MoU, Iran and the United States had options to extend the time; however, so far no information on negotiations has been announced, increasing the uncertainty of a near-term end to the conflict.
At 11:34 am (IST), global benchmark Brent crude oil prices were trading 0.21% lower at $88.27 per bbl after the intraday high, in comparison to $88.52 per bbl at the previous commodity market close.
On Monday, India’s volatility indicator, the Nifty India VIX, surged 3% amid weak momentum and investor sentiment.
So while domestic sectors like Media, Defence, and Consumer durables were among the gainers, others like PSU Bank and IT were among the top laggards on August 17.
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