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Informist, Friday, Feb. 6, 2026

NEW DELHI – There may be some more pain ahead for information technology stocks in the coming week after the sharp sell-off seen this week, according to analysts. They are, however, positive on the IT sector in the long run.

"My outlook is not very bearish. Yes, near-term pain could exist, could strech somewhat more, mirroring the fall that we're seeing in global tech stocks but then the IT tech stocks in India had not rallied the way US tech stocks, especially the AI tech stocks, had risen last year. So, I think we would not be seeing such a steep fall as such. My sense is that they are relatively undervalued as compared to the broader markets," said Sugandha Sachdeva, founder of equity, commodity, and currency research firm SS WealthStreet. Sachdeva reckons the Nifty IT index may fall further to 35200 points next week. 

This week, Indian IT stocks crashed, mirroring a sharp sell-off in global IT stocks, dragging the Nifty IT index down by over 6% to 35611.05 points. Global stock markets tumbled after San Francisco-based artificial intelligence startup Anthropic released 11 open-source plug-ins for its Claude Cowork agent last week. The announcement triggered concern that AI could fundamentally change the competitive landscape and undercut traditional software business models.

"The reason why IT stocks (also) fell this week was the appreciation that we have seen in the Indian rupee after the Budget and also the US-India trade deal optimism, though the formal agreement is still awaited," Sachdeva said. She added that once the India-US trade deal agreement is in place, it will be a positive catalyst for Indian IT stocks.

Investors are now reacting more to AI developments around the world than to the fundamentals and performances of IT companies, Nuvama Wealth Management Ltd. said in a report released Friday. "We see the current scepticism as a repeat of previous tech cycles (2016–17 being the most recent one), and reckon Indian IT companies shall rebound, as Gen AI proliferation increases. We remain positive on the sector," the brokerage added.

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Following are the resistance and support levels for key IT stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Shakshi Jain

Edited by Akul Nishant Akhoury

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