On Tuesday, September 22, IT stocks in India fell sharply as investors focused on elevated US Treasury yields and capital outflow from high‑growth sectors. The sectoral Nifty IT index dropped 1.7%, falling to an intraday low of 28,332.15 points from 28,830.90 points at the previous close. At 12:54 pm IST, the index stood at 28,484 points, down 1.2%. The decline was driven by heavyweights such as Infosys, HCL Tech, Persistent Systems, and TCS, which dragged the benchmark down nearly 2%.

Key losers included LTM at ₹4,130, down 4.3% intraday and 4.9% over five days; HCL Tech at ₹1,263, down 3.1% intraday and up 0.7% over five days; Persistent Systems at ₹5,364, down 1.6% intraday and 2% over five days; Tech Mahindra at ₹1,539, down 1.7% intraday and 2.1% over five days; Mphasis at ₹2,270, down 1.8% intraday and 4.5% over five days; Infosys at ₹1,025, down 1.8% intraday and 4.8% over five days; TCS at ₹2,106, down 1.3% intraday and 6.4% over five days; and Coforge at ₹1,807, down 1.6% intraday and up 1.8% over five days. These figures are sourced from the NSE website as of 12:54 pm IST on September 22, 2026.

Investors remained cautious amid capital rotation out of high‑growth sectors, with oil prices volatile amid geopolitical uncertainty. US benchmark Treasury yields hovered near 5%, adding to subdued sentiment in emerging markets. The US 10‑year Treasury yield surged to 4.972% at 3:12 am ET, prompting global investors to pull funds from emerging markets into safer assets such as government treasuries. This environment intensified the sell‑off in Indian IT stocks.

CLSA analysts noted that IT companies’ management commentary on demand for the Q2 FY27 period remains cautious due to weak macro fundamentals impacted by geopolitics, higher rates and inflation, and muted discretionary demand. They predict that despite the subdued demand environment, IT order books and employee headcounts will remain largely stable, mitigating extreme negative repercussions of AI rollouts on renewed deals and IT jobs. The BFSI segment of IT companies continues to see resilient demand despite recent trading and IB revenue warnings.

The analysts added that discretionary demand remains muted, implying more EPS downside risk, particularly for Infosys and Wipro. TCS maintained a cautious stance, while HCL Tech’s demand commentary remained the most resilient. The BFSI segment of the IT companies’ business continues to see resilient demand despite recent trading and IB revenue warnings in the market, according to CLSA experts.

Oracle Financial Services Software (OFSS) shares recovered from losses after a sell‑off on September 21. A Financial Times report on September 19 cited that around $18 billion of loans tied to a data centre leased to Oracle in New Mexico slid into stressed territory. OFSS clarified that it is a separate entity and has no knowledge of developments concerning Oracle’s data centre, as stated in an exchange clarification. This information is provided for informational purposes only and is not investment advice.