Top four IT firms wipe out $50 billion in investor wealth since January 2025

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India’s top four IT companies—Tata Consultancy Services, Infosys, HCL Technologies and Wipro—have collectively lost $50.5 billion (₹4.3 lakh crore) in market capitalisation during the first three months of 2025, driven by concerns over slowing global demand and cautious client spending.

Among the four, Tata Consultancy Services, the largest IT firm, recorded the steepest decline, shedding $20.5 billion in market capitalisation since the beginning of the year. Infosys saw its valuation drop by $14.9 billion, while HCL Technologies and Wipro lost $10.3 billion and $4.8 billion, respectively, during the same period.

Shares of TCS plunged 12% in the March quarter, while Infosys and HCL Technologies fell nearly 17%, marking their steepest decline in the last ten quarters. Wipro

also saw a sharp drop, sliding 13% since January 2025. As of Friday's (March 28) close, TCS boasts a market valuation of $152.6 billion, while Infosys and HCL Technologies are valued at $76.3 billion and $50.5 billion, respectively.

IT stocks lose favor among investors

Source: Bloomberg

Meanwhile, Goldman Sachs lowered its price targets for both TCS and Infosys while maintaining its “Buy” ratings. The target price for TCS was reduced by 7% to ₹4,230, while Infosys saw a sharper cut of 15% to ₹1,790.

The brokerage also sharply reduced its FY26 revenue growth forecast for the sector to 4% year-on-year, 230 basis points lower than its previous estimate. “This revision reflects macro uncertainty, particularly in the U.S., which accounts for 60% of India’s IT revenues,” Goldman Sachs wrote in an investor note.

While around 70% of analysts tracking TCS and Infosys on Bloomberg have a “Buy” rating, only 42% recommend the same for HCL Technologies. Consequently, HCL Technologies has the highest “Sell” rating among the three, with 10 out of 45 analysts advising a “Sell.” In comparison, 10% of analysts suggest a “Sell” for TCS, while 13% hold the same view for Infosys.

The Nifty IT Index, one of the worst-performing indices in 2025 so far, has plunged 15%. The gauge for IT stock has significantly underperformed the Nifty50, which has declined marginally by 0.5% during the same period. The continued weakness in large IT firms has also reduced their weight in the benchmark Nifty50 to 12%, down from over 14% in December last year.