IT stocks fall today, handing back a chunk of last week’s bounce. The Nifty IT index slipped about 0.8% on Monday, October 12, 2026, according to HDFC Sky, and Tech Mahindra ended up among the weakest names in the Nifty 50.
It came straight after a good session in which IT stocks had rallied 3%. The Nifty 50 itself closed 0.70% lower at 22,363.35.
In this article
IT stocks fall today: the movers
- Tech Mahindra: closed down 2.85%, the third-biggest loser in the Nifty 50 (Upstox).
- TCS: one of the Sensex laggards, per CNBC-TV18.
- HCL Technologies: went the other way, closing 0.5% higher ahead of its results (Business Upturn).
- BSE IT index: down 0.68% (ET Now).
Why Tech Mahindra fell: the SpaceX worry
According to Capital Market, Tech Mahindra followed global telecom stocks lower after SpaceX’s expansion plans stirred fears of tougher competition in wireless communications. The worry is that SpaceX could pair satellite connectivity with ground-based mobile networks and go after traditional operators.
Why should an IT services company care? Communications is Tech Mahindra’s biggest vertical, at 32.3% of revenue in Q1 FY27, Capital Market said. Squeezed telecom operators tend to trim their technology budgets.
The bigger picture: a rough year for IT
A Mint report dated September 30 called Nifty IT the worst-performing sectoral index, and pointed to:
- Macroeconomic uncertainty and geopolitical tension
- AI-driven disruption of traditional services work
- Heavy reliance on North American clients
- Foreign investors pulling back their exposure to the sector
Kotak Institutional Equities, quoted in the same Mint piece, was bracing for another muted quarter. Its Q2 FY27 revenue growth estimates:
- HCLTech: +2% QoQ, the best of the large players
- Tech Mahindra: +1.6% QoQ, +6.6% YoY
- Infosys: +1.1% QoQ
- TCS: +0.5% QoQ
IT results calendar
- HCLTech: reported on October 12. Our HCLTech Q2 results post has the details.
- Tata Elxsi: October 13
- Wipro, Tech Mahindra, Persistent Systems: October 15 (Business Upturn)
- Infosys: October 23 (Mint)
What it means for investors
IT stocks keep lurching between relief rallies and new worries, and last week’s 3% bounce didn’t last long. The real test comes with the October 15 results, when Tech Mahindra will have to tackle the telecom question head-on. When those numbers land, we’d watch deal wins, what clients are saying about spending, and margin guidance.
For the rest of the market, see the Stock Market Today India hub.
Sources: HDFC Sky, Upstox, Capital Market, CNBC-TV18, ET Now and Business Upturn (Oct 11-12, 2026); Mint (Sept 30, 2026).
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