Here’s Why IT Stocks Are Down Today

TCS share price traded at ₹2,690 as of writing on February 13, down 2.18% from its previous close of ₹2,750.10, as selling pressure pushed the stock toward a fresh 52-week low, earlier during the session, a drop of about 5.07%. The stock opened at ₹2,585.00 and moved between ₹2,585.00 and ₹2,687.00 in early trade, reflecting sharp volatility at the start of the session.

Source: Yahoo Finance

The decline followed sustained weakness across information technology stocks. Investors reassessed long-term pricing power, deal wins, and earnings visibility for traditional IT services companies as concerns around AI-driven productivity gains gathered pace. Market participants questioned whether automation and artificial intelligence could reshape cost structures and contract models in the sector.

At the same time, stronger-than-expected US jobs data shifted global sentiment. The data reduced expectations of a near-term interest rate cut by the US Federal Reserve. As a result, global technology stocks came under pressure, and Indian IT counters mirrored that trend in early trade.

Broad-Based Pressure Across IT Stocks

The NIFTY IT index fell 1,378.30 points, or 4.16%, to 31,781.90 as at 9:20 am IST, compared with its previous close of 33,160.20. The index opened at 31,487.40, touched a high of 31,918.65, and slipped to a low of 31,422.60 during the session. The sharp decline signaled broad-based sectoral weakness rather than stock-specific movement.

Overnight losses on Wall Street intensified pressure. Infosys ADRs dropped 9.84% on the New York Stock Exchange, while Wipro ADRs declined 4.6%. These moves aligned with the broader sell-off in US technology shares and set a cautious tone for domestic markets.

Valuation Metrics and Trading Levels

TCS now trades significantly below its 52-week high of ₹3,984.45, while the 52-week low stands at ₹2,585.00. The stock’s price-to-earnings ratio sits at 19.80, and it offers a dividend yield of 2.41%, according to available market data. The company’s market capitalisation has slipped to around ₹9.45 lakh crore following the recent decline.

Traders continue to watch technical levels closely. The stock hovers near heavy support, and market participants track price action for signs of reversal. However, sellers have used intraday recoveries as exit opportunities in recent sessions.

Source: TradingView Via X

What Investors Are Watching

Future movement may depend on earnings updates, deal momentum, margin performance, and management commentary through regulatory filings. Global cues, particularly from US markets, could also shape near-term direction.

As of 9:20 am IST on February 13, TCS remained under pressure at ₹2,610.60 while the NIFTY IT index traded 4.16% lower. The session reflected sector-wide caution as investors weighed AI-related disruption risks and shifting global rate expectations.