Nifty IT Slips Over 3.5%
On July 31, the Nifty IT index opened at 30,488.40 against its previous close of 31,194.55. Selling pressure intensified in early trade, pulling the index to an intraday low of 30,034.40. At its lowest level of the day, the index had declined around 3.72% from its previous close.
The index had gained in each of the previous five trading sessions and was trading near a two-month high before Friday's correction.
In addition, the Nifty IT index had recovered nearly 24% from its recent low of 25,699 recorded on July 1, 2026. It also touched a 52-week high of 31,846 on July 30, 2026. That represented a gain of almost 24% in about one month.
TCS and Infosys Fall More Than 4%
TCS was among the biggest losers in the sector. The stock opened at ₹2,385 compared with its previous close of ₹2,431.80. It later slipped to an intraday low of ₹2,326.10, marking a decline of around 4.35% from the previous closing price.
Infosys opened in the red at ₹1,118.90 against its previous close of ₹1,155.10. The stock fell over 4% during early trade before recovering part of the losses. It was trading near ₹1,135 during the afternoon session. Similarly, LTIMindtree remained under pressure and declined more than 3% during the day.
Global AI Optimism Remains Intact
Microsoft's latest quarterly results and stronger-than-expected guidance reassured investors that spending on artificial intelligence infrastructure continues to remain strong. The company's upbeat outlook eased concerns over large AI investments and triggered fresh buying. Microsoft shares surged more than 15% on Wall Street after the announcement.
The positive sentiment also spread across Asian markets, where investors aggressively bought semiconductor stocks that are expected to benefit from rising AI demand.
KOSPI Gains Over 18%
The benchmark Kospi soared as much as 18%, snapping a three-day run of losses. Heavyweight chipmaker SK Hynix Inc. climbed by close to the 30% daily limit, helped by a rare direct share purchase by SK Group Chairman Chey Tae-won. Memory-chipmaker peer Samsung Electronics Co. rose as much as 26%.
SK Hynix Inc. reported record-qualifying performance. Management attributed the performance to sustained demand from expanding AI infrastructure. In addition, Samsung Electronics Co. said it expects memory demand to remain robust during the second half of 2026, supported by continued investment in AI infrastructure and wider adoption of agentic AI.
Why Indian IT Moved Differently
While global technology stocks rallied on renewed AI optimism, Indian IT companies witnessed a different market reaction.
Unlike global semiconductor companies, Indian IT firms are not direct beneficiaries of rising demand for AI chips and memory products. Investors instead chose to book profits after a sharp run-up in domestic IT stocks over the past month.
