A punishing, multi-month bear market has erased ₹17.6 lakh crore in combined market capitalization from India's top 10 digital and technology services exporters, pushing valuations to levels not seen since the global financial crisis. Driven by systemic concerns over generative artificial intelligence, weak discretionary spending, and muted earnings growth, the Nifty IT index plummeted from its cycle peak of 46,089 on December 13, 2024, to a low of 27,078 on May 14, 2026.
IT sector bellwether Tata Consultancy Services (TCS) alone shed more than ₹8 lakh crore in value as its shares crashed 50%. Infosys plunged 45%, while HCL Technologies and LTIMindtree dropped at least 40%. Wipro, Mphasis, and Coforge capitulated by over 30%, with all other index constituents falling by at least 25%. After shedding 20% in February and 5% in March, the Nifty IT index has shown signs of stabilization, managing a 1% gain in April before losing 1% so far in May.
