IT Stocks Plunge Up to 5% on AI Fears & Strong US Jobs Data

Indian IT shares tumbled sharply on February 12, 2026, with

s, Coforge, , hindra and others falling 4–5% as renewed AI disruption concerns combined with stronger-than-expected US January jobs data. The Nifty IT index dropped over 4% to ~33,589, becoming the top sectoral loser. Infosys and Coforge led declines at ~5% each (Infosys hitting lowest since April last year), followed by TCS, Tech Mahindra, Mphasis, LTIMindtree and Persistent Systems (over 4%), while HCL Tech and Wipro fell more than 3%. The sell-off tracked Wall Street weakness after US nonfarm payrolls rose 130,000 in January and unemployment fell to 4.3%—signaling a resilient labor market that may delay Federal Reserve rate cuts. Investors remain wary of AI tools automating software development and IT services tasks, raising fears of reduced demand, pricing pressure and disruption to traditional outsourcing models. The sector has already faced volatility in 2026 amid global tech uncertainty and AI adaptation challenges.