Nifty IT Crashes 2%: Infosys, TCS, HCLTech, Tech Mahindra & Other Shares Down; Know Why IT Stocks Are Falling?

Indian IT stocks remained under intense pressure on Thursday, May 14, 2026, extending their losses for a fourth straight trading session as investors grew increasingly concerned about the pace at which artificial intelligence could disrupt the traditional global outsourcing model that has long supported the sector's growth.

IT Stocks Crash on 14 May 2026; Nifty IT Down 2%

The sell-off was particularly notable because it occurred even as the broader market traded firmly higher.

The NIFTY IT declined 2.2%, sharply underperforming the benchmark NIFTY 50, which gained around 0.8% during the session. By 1:44 PM IST, the NIFTY IT index was trading at 27,379.15, down 537.50 points or 1.93%.

The index opened at 27,847.50, touched an intraday high of 27,856.00 and slipped to a low of 27,078.00. With the latest decline, the NIFTY IT index has now fallen more than 40% from the record high it touched in December 2024, highlighting the magnitude of the sector's prolonged correction.

Selling was broad-based across most frontline technology stocks, with several companies either touching or hovering near their 52-week lows.

Wipro Share Price Today: Only IT Stock in Green Today

Wipro was the only major stock to remain in positive territory, rising 0.43% to Rs 188.60. Mphasis declined 0.68% to Rs 2,130.70, while Oracle Financial Services Software slipped 1.04% to Rs 8,836.00.

TCS, HCLTech & Tech Mahindra Share Price Today

Tata Consultancy Services (TCS) fell 1.09% to Rs 2,248.10 and HCL Technologies lost 1.40% to Rs 1,127.20. Coforge declined 2.01% to Rs 1,271.00, while Tech Mahindra dropped 2.37% to Rs 1,342.40.

Infosys, LTIMindtree and Persistent Systems Among Worst Performers Today

Infosys fell 2.49% to Rs 1,095.10, LTIMindtree shed 2.94% to Rs 3,966.30 and Persistent Systems plunged 3.74% to Rs 4,663.90, making it the worst performer among the major constituents.

Why IT Stocks are Falling Today

The immediate trigger for Thursday's sharp decline was the announcement by OpenAI
of a new enterprise-focused initiative called "The Deployment Company."

The new business unit is designed to provide direct, hands-on artificial intelligence implementation services for enterprise customers. Through its acquisition of consulting firm Tomoro AI and the use of specialised "Forward Deployed Engineers," OpenAI is expanding beyond the development of AI models into workflow redesign, systems integration and organisational transformation.

This move has heightened concerns that AI companies are increasingly entering the high-value consulting and implementation space, potentially competing directly with traditional IT services firms that have historically earned substantial revenues from enterprise transformation projects.

"IT stocks faced a sharp correction today following OpenAI's announcement of 'The Deployment Company,' a new business unit designed to provide direct, hands-on enterprise AI implementation. By acquiring the consulting firm Tomoro and utilizing 'Forward Deployed Engineers,' OpenAI is moving beyond model development into the high-value territory of workflow redesign and organisational transformation," said Shashwat Singh, Fundamental Analyst at Bajaj Broking.

This launch is the latest in a series of aggressive moves over the last 3 to 4 months where AI giants have transitioned from providing tools to offering end-to-end services, creating a structural threat to the traditional billable-hour models that have long sustained the global IT industry.

The market reaction was particularly severe for India's service-based IT giants, as investors fear these companies may be sidelined by AI companies that can now automate and deploy their own technology more efficiently.

"This concern over the long-term viability of the offshore service model has been compounded by rising geopolitical tensions, which have dampened global risk appetite and triggered a broad-based sell-off. As OpenAI scales its ability to build 'AI-native' infrastructure directly for clients, the legacy IT sector faces a 'collision' of technological disruption and macroeconomic instability, leading to today's significant dip," as per the expert.

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