Infosys Falls Below ₹1,000, Wipro Hits Six-Year Low as India IT Sector Faces Worst Selloff Since 2022

The Quick Take

• Infosys fell below the ₹1,000 level and Wipro hit a six-year low as the India IT sector selloff intensifies
• The IT sector is experiencing its worst downturn since 2022 amid concerns about AI disruption and weak earnings growth
• AI disruption fears and subdued client spending are compounding existing macro headwinds for India's top IT exporters

Infosys trading below ₹1,000 and Wipro reaching a six-year low marks a painful milestone for India's largest technology exporters, signaling that investor confidence in the sector's near-term earnings trajectory has fundamentally eroded. The combination of two structural pressures — AI disruption to traditional IT services delivery models and weak client technology spending from US and European enterprise accounts — has created conditions not seen since the 2022 tech selloff. Infosys, India's second-largest IT services company by market cap, breaking below the ₹1,000 psychological support level could trigger additional institutional stop-losses.

The AI disruption narrative is particularly damaging for Indian IT companies because a significant portion of their revenue derives from labor-arbitrage staffing arrangements in application management, testing, and basic development — segments most directly threatened by AI code generation and automation tools. TCS, HCL Technologies, and Wipro all face a structural repricing of these service lines. The silver lining is that AI also creates new demand for implementation, integration, and governance services that Indian IT companies are well-positioned to capture — but the transition creates an earnings air pocket that markets are now pricing in.

Watch the next earnings guidance cycle from Infosys and TCS — any upgrade to forward revenue growth would signal that AI-driven demand for services is offsetting legacy service line compression. The US enterprise technology spending environment, measured via quarterly results from Accenture and Cognizant, is the key external proxy for Indian IT sector demand. Any rupee depreciation — which is currently occurring — provides a partial offset to earnings pressure by boosting the rupee value of USD-denominated revenues, giving the IT index a natural hedge against broader Indian market weakness.

Synthesized from 1 source.