New Delhi, Aug. 13 -- Domestic tech stocks have emerged as the worst performers in 2025 so far, with persistent selling across the board leading to a sharp erosion in value and pushing them to multi-month lows. Lackluster earnings, tariff concerns, and a weak demand outlook have dampened investor sentiment toward the sector, triggering a rapid exodus from these stocks.

As a result, the Nifty IT index has crashed 20% year to date. If the pressure on tech stocks persists through the end of the year, it would mark the index's first annual decline since 2022. Moreover, a loss of over 26% in value would make it the steepest yearly drop since 2008.

Among its constituents, seven out of ten are in bear market territory, trading more than 20% be...