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Why IT Stocks Are Falling in 2026? | Nifty IT Down 25% Explained

GrowwApr 25, 2026

Indian IT stocks are experiencing a significant downturn in 2026, with the Nifty IT index down 25%. While deal wins remain strong, companies have issued cautious guidance for FY27, citing slow revenue conversion and the disruptive impact of AI. Valuations have compressed due to these concerns, leading to lower P/E multiples. The market is uncertain about the timing of AI-driven revenue growth, creating short-term volatility but the long-term IT story is not over.

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INFYNeutralMedium ConvictionSignal-backedSecondary

Infosys faces pressure with weak FY27 guidance despite strong deal bookings.

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