BENGALURU, June 24, 2026, 03:36 IST
Infosys Ltd shares slid 3.39% to 1,029.30 rupees on the NSE Tuesday, after hitting an intraday low of 1,026 rupees. The drop weighed on the Nifty IT index, which closed 2.23% down at 27,012.05. Infosys has dropped 9.99% in the last week.
Infosys held a 27.08% weight in the Nifty IT index as of NSE Indices’ May 29 factsheet. Tata Consultancy Services followed at 19.71%. For investors, index weight shows how much a single stock drives the moves of the index.
With that weight, Infosys’ decline made up around 0.9 percentage point of Nifty IT’s 2.23% slide—about 40% of the sector’s loss by a straight weight-times-return read. TCS dropped 3.21%, Wipro lost 3.16%, HCLTech slipped 1.86%. Losses hit the group, but Infosys had the biggest effect.
Tuesday’s move points to an issue with sector funds instead of being limited to a single stock. NSE Indices said the Nifty IT index gets used to benchmark portfolios and is behind index funds, ETFs and structured products. So any portfolio tracking the IT benchmark ends up heavily exposed to Infosys, even if the manager isn’t looking for that particular stock’s risk.
Nifty IT index dropped 13% in three weeks, while the Nifty 50 gained 2%, according to Business Standard. The index hit a 52-week low on Friday. Over the last four sessions, the index fell 6% after Accenture cut its annual revenue outlook and gave a weaker Q4 forecast.
Indian shares dropped on Tuesday. Nifty 50 and Sensex both shed 1.16%. IT stocks under pressure after Jefferies and Morgan Stanley cited weak demand signs after Accenture’s outlook missed. Soft PMI numbers and concerns over the monsoon weighed too, Arihant Capital Markets’ Anita Gandhi said.
Accenture’s latest comments are still hitting sentiment. Morgan Stanley said after Accenture’s guidance, it looks less likely there’ll be a pick-up in second-quarter growth, according to Reuters. Mayuresh Joshi, head of equity research at William O’Neil & Co, told Reuters that the market was looking for growth, but it’s “clearly missing.” Pritesh Thakkar at PL Capital said Indian IT names were up against slower deal signings and stretched decision cycles, adding to the pressure. Reuters
Infosys pushed back on worries about AI disruption at its annual general meeting on Tuesday. Chairman Nandan Nilekani told shareholders, “AI will not replace companies like ours,” saying big companies aren’t deploying AI at scale yet and that’s the opportunity. Infosys said it’s already working with 90% of its top 200 clients on AI and puts the AI-first services market at $300 billion to $400 billion by 2030.
Infosys chief Salil Parekh said there’s demand from clients for “modernization of technology using agents.” In its AGM deck, Infosys said AI revenue made up 5.5% of sales, or about $1 billion a year, at the last disclosure. That’s a number bulls will watch to see if AI is taking over work from dropped discretionary projects, or just easing some of the broader squeeze. The New Indian Express
The risk cuts both ways. A solid July 23 earnings call or firmer signs that AI is driving revenue could spell a bounce after the recent selloff. On the other hand, if Accenture’s deal delays stretch into a wider spending freeze, Indian IT stocks could face more pressure, with Infosys likely to weigh heaviest on a sector turnaround because of its index share. Infosys said its board will sign off on June-quarter results on July 23, with analyst calls that day to go over numbers and the outlook.
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