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Nifty IT Extends Losses for Third Session on US Rate Concerns
The Nifty IT index declined for the third consecutive session as concerns over prolonged higher US interest rates weighed on investor sentiment. The sector also remained under pressure following weak global IT spending guidance and continued uncertainty around discretionary technology spending.
By Finblage Editorial Desk
11:45 am
30 June 2026
The Nifty IT index extended its losing streak to a third consecutive trading session on Tuesday, emerging as the worst-performing sectoral index on the National Stock Exchange. At around 11:06 am, the index was down 1.95 percent, significantly underperforming the benchmark Nifty 50, which declined 0.27 percent. The index has fallen nearly 4 percent over the past three trading sessions.
Selling pressure was broad-based across frontline information technology companies. Wipro declined 2.9 percent, Infosys fell 2.5 percent, Tata Consultancy Services lost 2.2 percent, and HCLTech slipped 2.1 percent, with all four stocks featuring among the top losers on the Nifty 50.
Investor sentiment weakened amid concerns that US interest rates could remain elevated for longer than previously expected. A prolonged high-interest-rate environment may prompt enterprises to defer discretionary technology spending, posing a challenge for Indian IT companies that derive a significant share of their revenue from North America.
The sector also continued to face pressure after global consulting firm Accenture issued weaker-than-expected revenue guidance last week. The outlook reinforced concerns that discretionary technology spending remains subdued, large project decisions are being delayed, and the rapid adoption of artificial intelligence is beginning to reshape demand for certain traditional IT outsourcing services.
Market participants are increasingly differentiating between technology segments, favouring companies that are direct beneficiaries of artificial intelligence, including semiconductor manufacturers, memory chip suppliers, networking companies, and data centre infrastructure providers. In contrast, investors remain cautious about traditional IT services companies that primarily generate revenue from application development, maintenance, and consulting services.
The decline in Indian IT stocks came despite a positive session for global technology shares. US technology stocks advanced overnight as investors renewed buying interest in AI-related companies, while broader Asian equity markets also traded higher, supported by optimism surrounding artificial intelligence-driven growth.
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