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Infosys, Wipro, TCS, Persistent Systems and Coforge may see volatility after US SaaS stocks like Gartner, Adobe and Salesforce plunged.
Global technology stocks under pressure as US SaaS sell-off weighs on Indian IT shares.
IT Stocks In Focus: Shares of Indian information technology companies such as Infosys Ltd., Wipro Ltd., Tata Consultancy Services Ltd. (TCS), Persistent Systems Ltd. and Coforge Ltd. are expected to remain in focus on Wednesday, February 4, after US software-as-a-service (SaaS) stocks witnessed a sharp sell-off overnight on Wall Street.
The decline in US technology stocks has raised fresh concerns around software business models and the pace of enterprise spending, factors that often have a direct bearing on Indian IT companies with significant exposure to North American clients.
US Software Stocks See Steep Declines
US software stocks led the losses during Tuesday’s session. Gartner plunged as much as 25% intraday before closing around 21% lower. Other major SaaS names such as Adobe, Salesforce and Microsoft declined between 3% and 8%.
The broad-based selling reflected renewed investor caution over valuation levels and the sustainability of growth in enterprise software amid rapid advancements in automation and artificial intelligence tools.
Impact On Indian IT ADRs
The weakness in US technology stocks also spilled over into American Depository Receipts (ADRs) of Indian IT companies. Infosys ADRs declined nearly 6%, while Wipro ADRs fell about 5% overnight. Shares of global IT services peers such as Accenture and Cognizant also dropped by up to 10%.
AI Concerns Add To Selling Pressure
A key trigger behind the sell-off was heightened investor reaction to the launch of a new legal automation tool by Anthropic PBC. The development has intensified debate around the potential disruption AI-driven solutions could pose to traditional software and IT services revenue models, adding to near-term volatility across global technology stocks.
February 04, 2026, 07:25 IST
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