AI fear is repricing the Indian IT industry.
−49%
The collapse in foreign holdings of Indian IT — ₹7.1 lakh cr → ₹3.6 lakh cr — through both capital exiting and the shares that remain being repriced down. The price falls that drove it:
| Price decline | From peak | CY2026 (to 15-Jun) |
|---|---|---|
| Nifty IT index | −39% | −26% |
| TCS | −48% | −31% |
| Infosys | −40% | −29% |
| HCLTech | −40% | −30% |
| Wipro | −41% | −30% |
| Tech Mahindra | −19% | −11% |
| Nifty 50 (benchmark) | −9% | −9% |
Share-price decline, index and top-5 names — from each instrument's own peak (the index peaked Dec-2024), and over CY2026 to 15-Jun.
The reading — and its limits
The driver is read from filings and the market, not price alone: Indian IT's own filings name an “AI productivity impact,” and the correction is described as a structural re-rating. In addition to AI, cyclical concerns are also at work — weak US discretionary spend, tariff drag, BFSI pressure. Tech Mahindra is the outlier.
Method Nifty IT index from NSE (validated against the Yahoo ^CNXIT series, zero divergence across CY2026). Top-5 company prices from Yahoo (auto-adjusted). Foreign-holding decline computed from NSDL. “From peak” is each instrument's own high; the index peaked Dec-2024.
Computed 22 June 2026