Indian IT stocks extend losses: Infosys, L&T, Wipro fall for fifth session on US spending concerns

Indian IT stocks extended their losing streak for the fifth consecutive session as concerns over slowing US discretionary spending weighed on investor sentiment.

The Nifty IT index remained in the red, contrasting with broader market gains, and slipped further into bear market territory after a sharp decline in the previous session.

Infosys, one of the biggest losers, continued to drag the sector lower following multiple brokerage downgrades.

L&T Technology Services led the losses, falling 1.3% to ₹4,334 per share, followed by Coforge and Wipro, which dropped over 1% each.

Infosys, a sector heavyweight, shed another 1% to trade at ₹1,577 per share, adding to its nearly 5% slump on March 12—a decline that wiped out eight months of gains.

The selloff came after Motilal Oswal downgraded Infosys to ‘Neutral,’ while Morgan Stanley cut its rating to equal weight and slashed its target price from ₹2,150 to ₹1,740 per share.

Other IT giants, including Persistent Systems, TCS, HCL Tech, Tech Mahindra, and LTI Mindtree, also traded in negative territory with marginal losses.

Market analysts warn that a revival in US discretionary IT spending may take longer than expected amid rising recession fears linked to Donald Trump’s trade policies.

Investors remain cautious after Trump refused to rule out a US recession as he pushes ahead with new tariffs, further dampening economic confidence.

Meanwhile, Asian stock markets reversed early gains and sank on Thursday as concerns over the economic fallout from President Donald Trump’s trade policies overshadowed initial optimism sparked by mild US inflation data.

Gold surged to within $10 of its all-time high, while the safe-haven yen strengthened, US Treasury yields declined, and crude oil prices fell amid risk-off sentiment.

Japan’s Nikkei 225 erased 1.4% intraday gains to trade flat, while Taiwan’s TWII index dropped 1.1% and South Korea’s KOSPI slipped 0.4%.

Australia’s ASX 200 closed 0.5% lower, entering a technical correction after falling 10% from its February 14 peak.

Global market sentiment remained weak, with S&P 500 futures down 0.5% and Nasdaq futures sliding 0.8% ahead of Wall Street’s reopening.

Pan-European STOXX 50 futures also dipped 0.5%, signaling a cautious start for European markets.

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