Infosys Share Price: Tech stocks, including Infosys and TCS, fell sharply, falling by up to 5%

Infosys Share Price: The Indian IT sector witnessed a sharp sell-off on February 12th amid global cues and concerns about artificial intelligence. The Nifty IT index fell more than four percent to 33,588.80 in the early hours of trading, becoming the market’s weakest sectoral index.

Negative Signals from Wall Street

The January employment report from the US was better than expected, but it did not have a positive impact on the markets. Strong job growth and a decline in the unemployment rate indicated that the US Federal Reserve would not be in a hurry to cut interest rates. Fears of prolonged high rates increased pressure on tech stocks.

Continued Decline in the IT Index

After falling nearly 13 percent last year, the IT index has declined by approximately 11 percent so far in 2026. Investors fear that AI-based automation could impact the business models of traditional software service companies. This is expected to put pressure on future earnings and margins.

Shares of major companies fell

Coforge and Infosys shares fell by nearly five percent. Infosys’ price reached its lowest level since April last year. TCS, Tech Mahindra, Mphasis, LTI Mindtree, and Persistent Systems fell by more than four percent. HCL Tech and Wipro also fell by more than three percent.

Impact of US employment data

Job growth in the US in January was primarily concentrated in the healthcare and social services sectors. While overall job growth appeared strong, other indicators pointed to a slowdown in the labor market. Analysts believe this employment pattern does not guarantee broader economic strength.

Wall Street tech companies are also under pressure

Major tech companies like Microsoft and Alphabet saw declines after the report was released. The software index also weakened, impacting global tech sentiment. This directly impacted Indian IT stocks, as a significant portion of these companies’ revenues comes from the US market.

AI Competition Raises Concerns

Anthropic’s launch of new plug-ins and legal tools for its cloud AI platform has raised fears of intensifying competition. These tools are said to be capable of automating tasks such as legal, sales, marketing, and data analysis. This could increase pressure on the labor-based model of traditional IT services companies.

Expert Opinion

Market experts believe that the current decline is partly an emotional reaction, but the growing impact of AI cannot be ignored. Automation could lead to a reduction in billable hours and employee numbers, which could impact revenue growth.