IT Stocks Under Pressure for Sixth Session: Coforge, Infosys and Infosys Lead the Sell-Off

Indian IT stocks remained under pressure on Wednesday, September 9, with the sector extending its losing streak to a sixth consecutive trading session. The latest decline saw major names including Coforge, Infosys, TCS and Tech Mahindra among the stocks facing heavy selling.

The Nifty IT index fell around 3% during morning trade, taking its six-session decline to more than 10%. The weakness comes as investors remain cautious about the outlook for technology spending and global interest rates, while a company-specific development at Coforge added to the pressure.

Coforge Takes Centre Stage After Chairman's Resignation

Coforge emerged as one of the biggest losers in the IT pack after Om Prakash Bhatt resigned as the company's chairman and non-executive independent director.

Bhatt's resignation followed concerns raised during an internal audit examining the company's board evaluation process. According to Coforge's disclosure, the review identified issues concerning the way the board evaluation exercise and resulting report were handled and presented.

The audit also raised concerns that material information relating to Bhatt's own performance had not been fully disclosed to the board.

The board had sought an explanation from Bhatt and was assessing his response when he submitted his resignation on September 8. Bhatt maintained that he had acted in good faith during the board evaluation process.

Coforge subsequently appointed non-executive independent director Vivek Sharma as interim chairperson, with the arrangement extending until January 31, 2027.

Infosys, TCS and Tech Mahindra Also Fall

The selling was not restricted to Coforge. Several large IT companies also recorded sharp declines during the morning session.

Infosys was among the major Nifty losers, falling around 3.6%, while Tech Mahindra declined about 3.3%. Other major technology companies, including TCS, were also trading lower as investors continued to reduce exposure to the sector.

Separate market data showed the broader IT pack firmly in the red, with HCL Technologies, Persistent Systems, Mphasis, Wipro and LTIMindtree also witnessing declines during early trading.

The widespread nature of the fall indicates that Wednesday's weakness was not simply a Coforge-specific event. Broader concerns surrounding global technology spending and monetary policy are also influencing investor sentiment.

Why Are Indian IT Stocks Falling?

One of the key concerns for investors is the interest-rate outlook in the United States.

Expectations of a potentially tighter monetary policy have increased following stronger US economic data. Higher interest rates can make companies more cautious about discretionary spending, including large technology projects.

That matters significantly for India's IT services industry because major Indian technology companies have substantial exposure to the US market.

If American businesses postpone technology investments or take longer to approve projects, Indian IT companies could face pressure on new deal activity and revenue growth.

The sector is also dealing with longer-standing questions surrounding artificial intelligence and the changing economics of traditional technology services. Investors are therefore assessing both near-term macroeconomic risks and longer-term structural changes within the industry.

Nifty IT Extends Its Losing Streak

The latest decline means the Nifty IT index has now fallen for six consecutive sessions. Over this period, the index has lost more than 10%, highlighting the intensity of the recent selling pressure.

The weakness also came amid a broader cautious mood in Indian equities. Rising crude oil prices and geopolitical uncertainty have added another layer of concern for investors, particularly because higher oil prices can affect inflation and economic growth in an oil-importing country such as India.

What Investors Will Watch Next

For IT investors, attention is likely to remain focused on the US interest-rate outlook, corporate technology spending and the industry's ability to maintain growth in an increasingly AI-driven environment.

Coforge will also remain in focus as investors assess the implications of the chairman's resignation and the governance concerns highlighted by the internal audit.

The sharp decline across several leading IT stocks shows that investors are currently taking a cautious approach to the sector. Whether the selling continues or stabilises will depend on developments in global markets, US monetary policy expectations and company-specific updates in the coming sessions.

For investors tracking the IT sector, the current correction is therefore an important period to watch—not only because of the immediate price declines, but also because it reflects wider questions about global technology demand and the future direction of India's technology stocks.