Indian information technology stocks opened lower on Friday as negative global cues from Wall Street weighed heavily on investor sentiment. The sector came under selling pressure after disappointing market reactions to the latest quarterly earnings from Alphabet and Tesla, sparking concerns that technology companies are spending aggressively on artificial intelligence without delivering sufficient returns.

The weakness in IT shares also coincided with a sharp decline in the broader market, as soaring crude oil prices and rising US Treasury yields added to concerns over inflation and corporate profitability.

Global Tech Selloff Spreads to Indian Markets

The latest correction began in the United States, where investors reacted sharply to earnings updates from Alphabet and Tesla.

Alphabet, Google’s parent company, reported strong revenue growth but significantly raised its capital expenditure plans for AI infrastructure. Meanwhile, Tesla witnessed a steep decline after reporting its first cash burn in two years despite healthy revenue growth.

The earnings triggered a broad selloff across US technology stocks, with the Nasdaq dropping more than 2%, while the S&P 500 and Dow Jones also ended lower. Investors questioned whether massive AI investments would translate into sustainable profits anytime soon.

The negative mood quickly spread to Asian markets. Technology-heavy indices across South Korea and Taiwan witnessed heavy losses, with semiconductor giants such as SK Hynix and Samsung Electronics seeing sharp declines.

Given the strong relationship between Indian IT companies and global technology trends, the selling pressure soon reached Dalal Street.

Infosys, TCS and Tech Mahindra Lead Declines

The Nifty IT index slipped during early trading as investors reduced exposure to technology stocks.

Among the major losers:

• Infosys fell nearly 3%, making it one of the biggest drags in the sector.
• Tech Mahindra declined by more than 1%.
• TCS also traded lower, though its losses remained relatively limited.

Mid-sized IT companies were not spared either. Mphasis and Oracle Financial Services Software also slipped, while HCLTech managed to outperform peers with only marginal gains.

The weakness in heavyweight IT stocks contributed significantly to the decline in the benchmark Sensex and Nifty indices.

Rising Oil Prices Add to Market Pressure

Apart from technology concerns, investors also reacted to a sharp jump in crude oil prices.

Brent crude climbed above the $100-per-barrel mark after renewed geopolitical tensions in the Middle East raised fears of supply disruptions. Higher crude prices increase India’s import costs and can fuel inflation, creating additional pressure on corporate earnings and economic growth.

As a result, both the Sensex and Nifty witnessed broad-based selling during the session.

Higher US Bond Yields and FPI Selling Hurt Sentiment

Market participants are also keeping a close watch on rising US Treasury yields, which have strengthened the appeal of fixed-income assets over equities.

The increase in the US 10-year bond yield has prompted foreign investors to adopt a cautious stance toward emerging markets, including India. A weakening rupee has further added to concerns, leading to fresh foreign portfolio investor (FPI) selling.

Analysts believe these factors are likely to keep volatility elevated in the near term.

What Investors Should Watch Next

The recent correction signals that global investors are becoming more selective about companies making large AI investments. Rather than rewarding aggressive spending alone, markets are increasingly demanding stronger cash flows, healthier margins and visible earnings growth.

For Indian IT stocks, future movement will largely depend on global technology earnings, oil price trends, US interest rates and foreign investment flows.

Until these uncertainties ease, analysts expect the sector to remain volatile despite its strong long-term fundamentals.