Decline in Indian IT Stocks: Infosys and Wipro ADRs Drop Following TCS Revenue Report
IT Majors To See More Red? Infosys, Wipro ADR Extend Decline After TCS Annual Revenue Slip
Ndtv
Image: Ndtv
American Depository Receipts (ADRs) of Indian IT companies Infosys Ltd. and Wipro Ltd. fell on Friday after Tata Consultancy Services Ltd. reported its first annual revenue decline. This decline reflects a broader trend in the Indian IT sector, with concerns over missed AI opportunities and foreign investor sell-offs contributing to the downturn.
- 01Infosys and Wipro ADRs declined over 1% and 2%, respectively, following TCS's revenue report.
- 02TCS reported its first-ever annual dollar revenue decline of 0.5%, impacting investor confidence.
- 03The Indian IT sector is perceived to have lost its appeal, particularly in the context of AI advancements.
- 04TCS's revenue for the fiscal year ended March 31 was $30,017 million, with a 2.4% decline in constant currency.
- 05Despite the ADR decline, Wipro shares ended nearly 1% higher in local trading.
Advertisement
In-Article Ad
On Friday, American Depository Receipts (ADRs) of Infosys Ltd. and Wipro Ltd. continued to decline, following Tata Consultancy Services Ltd. (TCS) reporting its first annual revenue drop. The ADR of Wipro fell over 2% to $2.21, while Infosys decreased by over 1% to $13.49. This downturn comes despite a recovery in the Nasdaq index, highlighting concerns over the Indian IT sector's attractiveness to foreign investors. Kranthi Bathini, director of equity strategy at WealthMills Securities Pvt., noted that Indian IT firms are struggling to capitalize on artificial intelligence trends, leading to increased sell-offs of ADRs. TCS's financial results showed a 0.5% year-on-year decline in dollar revenue, totaling $30,017 million, with a 2.4% decline in constant currency. Despite the drop in ADRs, Wipro shares closed nearly 1% higher at ₹204.88, while Infosys shares fell 2.94% to ₹1,292.50.
Advertisement
In-Article Ad
The decline in ADRs reflects growing investor concerns about the Indian IT sector's growth potential, particularly in the context of AI advancements. This could lead to reduced capital inflow and impact job growth in the sector.
Advertisement
In-Article Ad
Reader Poll
Do you think the Indian IT sector will recover from this decline?
Connecting to poll...
More about Tata Consultancy Services
TCS CEO Defends AI Growth Potential Amid Market Skepticism; Reports $40 Billion Order Book
The Economic Times • Apr 10, 2026
IT Stocks Decline Following TCS' Disappointing Q4 Earnings Report
Business Standard • Apr 10, 2026
Chakri Lokapriya's Investment Strategy: Focus on Financials, IT, and Cyclical Recovery
The Economic Times • Apr 10, 2026
Read the original article
Visit the source for the complete story.