Tech Stock Losers: Infosys, TCS, HCL Tech Fall Up to 7.5% in Extended Tech Rout

Indian tech stock tumbled sharply on Friday, February 13, 2026, with major IT names like Infosys, TCS, and HCL Tech among the biggest losers as the sell‑off deepened across global technology markets. Investors dumped shares as fears about artificial intelligence disrupting traditional software and outsourcing businesses intensified, pushing the Nifty IT index into steep losses for the third straight session. 

The downturn hit valuations hard and wiped significant market value off sector leaders, dragging benchmarks lower and rattling sentiment on Dalal Street. For many traders and long‑term holders, this rout raises fresh questions about the future of India’s IT giants and what the next few weeks hold.

Snapshot – India Stock Market Performance & Key Data

Major Indian IT stocks sank sharply in early February 2026, led by heavy drops in share prices of Infosys, Tata Consultancy Services (TCS), and HCL Technologies as part of a broader sell‑off in the tech sector. The Nifty IT index dropped as much as 10% over two trading days, sliding to levels not seen in many months and dragging the overall Sensex and Nifty lower. Investors wiped out significant market value on fears that rapid advances in artificial intelligence (AI) technologies would weaken demand for traditional IT services.

On February 12-13, 2026, stocks of Infosys, TCS, HCL Tech, Wipro, and Tech Mahindra recorded steep losses, hitting 52‑week lows as buyers turned cautious amid fading optimism about near‑term rate cuts and persistent global tech weakness.

Domestic benchmarks also reflected this weakness: the Sensex fell over 550 points, with IT stocks responsible for a large share of that drop. These moves mark a continuation of pressure on the Indian technology sector, which had already lost ground in 2025 and early 2026.

Why are IT Stocks Falling?

What are the Main Triggers Behind the Sell‑Off?

Investors are selling shares of Indian IT companies due to three key factors:

AI Disruption Fears

AI technologies, especially advanced automation tools from companies like Anthropic, are perceived as a threat to the traditional IT services model. These tools can perform tasks once handled by human consultants, raising doubts about future revenue streams for service‑based firms.

Weak US Rate Cut Outlook

Stronger‑than‑expected US jobs data has reduced expectations of imminent Federal Reserve rate cuts. This has hurt tech valuations globally, including in India.

Global Tech Market Weakness

An extended sell‑off in global software and IT stocks has spilled over to Indian markets. This risk‑off sentiment has hit technology shares hard.

These factors combined have created uncertainty among investors, pushing them toward defensive assets and away from tech stocks.

TCS, Infosys & HCL Tech: Stock Details and Forecast

Tata Consultancy Services (TCS)

TCS has underperformed in recent sessions, with its share price sliding more than 30% below its 52‑week high and dipping to fresh lows on heavy selling pressure. Trading volumes have risen, reflecting heightened investor activity.

Technical indicators show broad weakness, with prices trading below key moving averages and the trend remaining bearish. According to analysts, TCS may remain under pressure until clearer signs of AI‑related revenue growth emerge. Mixed expectations point to potential consolidation rather than immediate recovery.

Infosys

Infosys has also fallen sharply, with intra‑day declines nearing 8% and extended selling over recent sessions.

Technical setups suggest that the stock is approaching major horizontal support levels. Some analysts view current conditions as oversold and see potential for a rebound if sentiment improves. According to a mid‑tier brokerage, there may be scope for mean reversion toward higher levels, though risks remain elevated.

HCL Technologies

HCL Tech has shown resilience relative to peers, although it has also fallen amid sector‑wide weakness. Previous quarterly results showed revenue growth, and some brokers expect operational strength to support longer‑term performance.

Forecasts for HCL suggest cautious optimism, with potential upside if demand for engineering and digital services remains intact. Technical indicators may be less oversold than some peers, offering room for recovery.

How are Analyst Views Shaping Market Expectations?

Not all analyst views are bearish. Some market strategists say that the sell‑off reflects a valuation correction rather than a fundamental collapse. These perspectives point to oversold market conditions, where technical indicators hint at a possible rebound once negative sentiment eases.

As of February 13, 2026, the valuation (P/E ratio) for the major Indian indices✍️

Nifty 50 (Large Cap): The present P/E ratio is 22.6✨

Nifty Midcap 100: The present P/E ratio is 33.2✨

Nifty Smallcap 100: The present P/E ratio is 30.8✨ pic.twitter.com/cxf8o2AmOw

— DEBAJYOTI SARMAH (@DebajyotiSarmah) February 13, 2026

Brokerage insights suggest that key momentum oscillators are in oversold zones for several major IT stocks, hinting at potential technical bounces. This view is reinforced by support levels forming around recent lows.

Conversely, pessimistic views highlight structural challenges. They emphasize that AI adoption could compress traditional IT services demand over time. These concerns are not yet fully priced into earnings forecasts, especially for labor‑intensive contracting models.

AI stock analysis tools are also signaling caution, with many models showing sustained downward momentum and volatility clustering across the IT index.

Broader Implications for Investors

For investors, this sell‑off raises questions about portfolio allocation and risk management. Technology stocks remain a major weight in the Indian market, but recent volatility suggests the need for caution.

Some key takeaways:

• Long‑term investors should separate short‑term noise from structural trends.
• Diversification across sectors can reduce concentrated risk from tech downturns.
• Watching corporate earnings and AI strategy disclosures will be important.

Conclusion – What Comes Next?

Indian IT stocks are facing a turbulent phase as fears of artificial intelligence disruption and weak global market cues weigh on valuations. Major companies like TCS, Infosys, and HCL Tech have all seen their share prices fall sharply in recent sessions, pushing the Nifty IT index to multi‑month lows. 

While some analysts see reasons for near‑term recovery, others warn of deeper structural shifts in the industry. Investors should watch upcoming earnings reports, global economic signals, and technology adoption trends closely to assess when the market may stabilize or rebound.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.