The cut across markets deepen in afternoon trade but the sell-off is particularly brutal in the technology space. The Nifty IT Index has cracked 4% intra-day. Though its is around 16% away from its 52-week lows, the Nifty IT Index is down 13% so far in 2025. The losses in the last 1 month is over 10% and this is the third consecutive session in the red for the IT Index.
The key tech stocks that have seen maximum decline include big Index losers today like Infosys, Wipro, TCS, HCL Tech, Tech Mahindra. MphasiS and Tech Mahindra saw the maximum damage, down about 6% each. Weak global cues coupled with the sell-off in AI-driven tech stocks led to the sharp fall in these stocks.
ALSO READ5 reasons why the market is falling today; Nifty slides to 9-month lows
Here are 3 reasons why the tech stocks have plunged as much as 6% in trade today
1. Nasdaq, S&P 500 slump on February 27
The overnight cues from US were not encouraging at all. The Tech-heavy Nasdaq slumped nearly 3% after a sharp cut artificial intelligence driven stocks. The concerns about the slowdown in US economy and also the latest Tariff announcements in the US continued to weigh on the investor sentiment further exacerbating the cut in the stocks.
2. Nvidia slides 8%
Nvidia shares slumped 8% in trade on worries about competition and challenges from DeepSeek and evolving dynamics of the AI-industry. The shares saw their biggest 1-day fall in 1 month despite the earnings being aligned to street expectations. The investors were worried about the spending that was going into Nvidia’s chips and the ecosystem. This is built around the current AI boom and include the likes of electricity to power large data centers. Additionally, Salesforce’s upcoming revenue forecast falling short of estimates is another reason that weighed on investor sentiment and fuelled negative sentiment about AI-driven stocks
ALSO READNvidia stock drops 8.5%—Biggest one-day fall in a month 3.Trump’s tariff threats
Trump’s tariff plans continue to weigh on the investor sentiment. The US President has announced that the 25% tariff levy on Mexico and Canada will come to force from March 4.
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