The Indian equity market witnessed a significant selloff last week, with the combined market capitalization of seven out of the top 10 most-valued companies declining by over ₹2 lakh crore. According to Religare Broking Ltd, the fall was led by Tata Consultancy Services (TCS) and Reliance Industries, mirroring a bearish trend in the equity market. The BSE Sensex plummeted 1,829.33 points or 2.33%, while the NSE Nifty fell by 455.6 points or 1.87%. As per Religare Broking Ltd, the market downturn was attributed to heightened geopolitical tensions and poor earnings commentary from IT majors, with global developments continuing to drive market direction.
TCS experienced the largest decline, with its market valuation falling by ₹66,699.44 crore to ₹8,67,364.12 crore. Reliance Industries also witnessed a massive dip in its valuation by ₹50,670.34 crore to ₹17,96,647.50 crore. Other significant losers included HDFC Bank (down by ₹23,090.05 crore), Life Insurance Corporation of India (down by ₹19,670.75 crore), Bharti Airtel (down by ₹19,406.59 crore), ICICI Bank (down by ₹14,663.27 crore), and Larsen & Toubro (down by ₹11,142.62 crore). However, some companies managed to buck the trend, with Hindustan Unilever's valuation rising by ₹20,652.91 crore to ₹5,47,219.80 crore, State Bank of India's market capitalization climbing by ₹19,522.76 crore to ₹10,16,752.53 crore, and Bajaj Finance seeing a slight increase of ₹8,253.64 crore to ₹5,73,690.81 crore.
Infosys has experienced a dramatic decline in investor confidence, losing over ₹2 lakh crore in market value this year and falling out of India's top 10 most valued companies. According to The Times of India, the stock has declined approximately 30% so far this year, with the company's market capitalisation now standing at around ₹4.9 lakh crore. This represents a sharp drop for a firm that is a key Nifty's bluechip constituent, highlighting the severity of the selloff amid the broader market decline.
Despite solid March quarter results, Infosys faces challenges with its future growth prospects. As reported by The Times of India, the company reported a 13% year-on-year rise in revenue to ₹46,402 crore in the March quarter, with net profit standing at ₹8,501 crore, beating expectations. However, the company's outlook for FY27, forecasting constant currency revenue growth of 1.5% to 3.5%, fell short of market expectations, raising concerns about slower growth ahead.
According to Axis Securities cited by The Times of India, the pressure on Infosys reflects deeper changes in the IT industry, with weak discretionary spending as clients focus more on cost-cutting and vendor consolidation. The brokerage noted that demand remains muted across sectors as clients prioritize resilience and cost efficiency, with growth now being driven more by productivity improvements than expansion. Large transformation projects are slowing, while interest in artificial intelligence and automation is picking up. The current market downturn reflects these broader industry challenges as clients become more cautious about IT spending amid macroeconomic uncertainties.
Despite market challenges, Infosys maintains strong deal momentum with contracts worth $14.9 billion signed in FY26, representing a 24% year-on-year increase. According to The Times of India, more than half of these deals were net new contracts, showing that clients continue committing to long-term projects despite execution delays. However, demand remains uneven across sectors, with financial services and energy performing well while manufacturing, retail and telecom sectors remain cautious due to macroeconomic uncertainty.
