New Delhi, June 27 -- India's information technology (IT) sector has been at the receiving end of investor pessimism in 2025, with the Nifty IT index emerging as the worst-performing sectoral index so far this year. As of June 25, the index had declined over 10 percent year-to-date, even as the broader Nifty 50 posted gains of more than 8 percent during the same period. The underperformance has been attributed to a combination of global macroeconomic pressures, weak enterprise technology spending, and continued foreign institutional investor (FII) outflows.

Most major IT stocks have seen significant erosion in value in the first half of 2025. Tata Consultancy Services (TCS) led the fall with a 16 percent decline. Infosys dropped over 14 ...