Information technology (IT) shares today Shares of information technology (IT) companies were under pressure with Infosys, Wipro, KPIT Technologies and Tata Elxsi recording respective 52-week lows on the National Stock Exchange (NSE) in Tuesday’s intraday deals ahead of September 2026 quarter (Q2FY26) earnings.
At 12:51 PM, the Nifty IT index was down 0.83 per cent at 27,854.40, as compared to a 0.48 per cent decline in the Nifty 50. The IT index hit a 52-week low of 25,699.10 on July 1, 2026. Infosys, Wipro, Tata Elxsi, KPIT Technologies, Birla Soft, Aurionpro Solutions and Happiest Minds Technologies hit their respective 52-week lows on the NSE in intraday deals.

Tata Consultancy Services (TCS), HCL Technologies, Mphasis, Oracle Financial Services, Persistent Systems and Tech Mahindra were down 1 per cent to 2 per cent. Thus far in the month of September 2026, Nifty IT index underperformed the market by falling 11 per cent, as against a 6 per cent decline in the Nifty 50.
Brokerages view on IT sector The recent retreat in IT sector valuations reflects a mix of cyclical macroeconomic pressures and rapid technological transitions. A slowing global growth outlook and persistent high interest rates have led corporate clients to delay discretionary technology spending and scrutinize large IT budgets, said Vinit Bolinjkar, Head of Research at Ventura.

The automation of routine coding, testing, and data engineering is squeezing traditional, effort-based billing models. While AI represents a major long-term growth catalyst, it creates near-term revenue friction before enterprise-wide transformation projects achieve scale.
On the sector's outlook, the brokerage firm said that the near-term market sentiment remains cautious as enterprise clients prioritize cost optimization. However, the long-term structural trajectory is robust as IT leaders pivot toward enterprise AI integration, cloud infrastructure modernization, and cybersecurity services to expand their global addressable market.

Meanwhile, the NSE IT index has performed well over the past three months, gaining 3 per cent driven by two narratives: i) in-line Q1 being perceived positively against soft expectations; and ii) concerns around AI-led disruption easing. Going into Q2FY27, expectations were for some improvement in growth, given that it is seasonally a stronger quarter, analysts at JM Financial Institutional Securities said.
However, macro uncertainty and AI-led productivity continue. Competitive intensity has also increased, with the industry now entering the fourth year of subdued growth. Net-net, the brokerage firm expects another soft quarter for most large tiers, with growth of -0.5 per cent to 2.6 per cent constant currency (CC) QoQ (-0.1 per cent to 6.6 per cent CC YoY) in Q2FY27.

NSE IT index currently trades at ~16x 1-year forward consensus EPS, JM Financial said in the IT sector report dated September 26, 2026 said. Among large tiers, the brokerage firm has an 'ADD' rating on Tech Mahindra, TCS and Infosys, and a 'REDUCE' rating on HCL Technologies, Wipro and LTM.
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