Indian IT under pressure as Nifty trails broader market 20%

Business Jul 01, 2026

Indian IT companies are having a tough time right now, with AI shaking up the industry and tighter budgets slowing growth.
Since early 2026, the Nifty IT Index has lagged behind the rest of the market by 20%.
Add in global uncertainty, like Middle East tensions and US interest rate worries, and clients are spending less on tech.

Nomura cuts Indian IT targets

Nomura still believes Indian IT will bounce back long term, but for now, it's lowering expectations.
Target prices for major players like Infosys, TCS, Wipro, HCLTech, and especially Tech Mahindra have all been cut.
On the bright side, CarTrade Tech got a boost thanks to smart use of AI on platforms like CarWale and OLX, creating new ways to grow even in a tough market.