IT stocks weigh on India’s Sensex, Nifty after HCLTech forecasts slower growth

India’s equity benchmarks fell on Wednesday, dragged by IT stocks after HCLTech forecast weak annual revenue growth, while investors assessed the outlook for U.S.-Iran talks after a ceasefire extension.

The Nifty 50 fell 0.81% to 24,378.10, and the BSE Sensex shed 0.95% to 78,516.49, after both indexes gained 1.6% over the previous three sessions.

Information technology, the benchmarks’ third-heaviest sector, slumped 3.9% after HCLTech reported subdued earnings and forecast weaker-than-expected growth for fiscal 2027.

HCLTech fell 10.8%, its worst session in over 10 years, dragging peers Infosys and Tata Consultancy Services down 3.4% and 2.8%, respectively.

READ MORE: Indian shares end at 6-week high as banks gain, Iran peace hopes aid sentiment

“Weaker commentary on demand and near-term growth visibility by HCLTech triggered concerns around IT sector’s earnings trajectory, leading to a sharp decline in the sector and dragging markets,” said Shashwat Singh, fundamental analyst at Bajaj Broking.

Tech Mahindra, which fell as much as 6.4% intraday, recouped some losses to end 2.6% lower after its own March quarter revenue topped expectations.

Overall, nine of the 16 major sectors rose. The small-caps and mid-caps gained 1.1% and 0.2%, respectively.

ABB India jumped 4.6% after parent ABB’s March quarter earnings showed a 26% increase in India orders.

Heavyweight financials fell 0.8% after rising about 2% in the last three sessions.

U.S. President Donald Trump said on Tuesday he would indefinitely extend the ceasefire with Iran to allow for further peace talks, although it was not clear on Wednesday if Iran or Israel, the U.S. ally in the war, would agree.

Trump also said he would continue the U.S. Navy’s blockade of Iran’s trade by sea.

Other Asian markets lost 0.6%, while Brent crude traded below $100 a barrel.

“With U.S. and Iran engaging in war of words ahead of the peace talks, investors are playing safe by cutting their equity exposure,” said Ankur Punj, managing director and business head at Equirus Wealth.