Indian IT stocks are facing a significant downturn in 2026, with major players like TCS and Infosys experiencing substantial drops of up to 38%. Foreign investors have divested heavily from the sector, pulling billions from Indian equities. LTI Mindtree leads the decline, followed closely by Infosys and TCS, as global capital shifts towards East Asian tech manufacturing hubs. This widespread pressure has impacted even large-cap and mid-tier IT firms.
Nominal GDP growth could fuel largecap recovery; pharma, auto ancillaries remain preferred bets: Shreyash Devalkar
Indian stock markets are defying foreign investor caution, driven by resilient June-quarter earnings. Companies are navigating geopolitical and inflation challenges better than expected, with a