IT Selloff Triggers Realty Spillover on AI Disruption Fears

IT Selloff Spills Into Broader Sector Rotation as AI-Disruption Concerns Deepen Late Trade

Indian equities saw a sharp risk-off turn in late trade, with information technology shares at the centre of the decline. Tech Mahindra was among the key laggards as selling in frontline IT names accelerated through the session. TCS, HCLTech, and Infosys were also under pressure.

As the day progressed, the fall spread to realty and other cyclical pockets. Market breadth weakened alongside the sector move, indicating a broader reduction in risk exposure into the close. By the end of trade, the session had shifted from an IT-led drop to a wider rotation across sectors.

Why the Market Reacted

The immediate trigger was fresh concern around AI-led disruption in legacy-code and maintenance work, which remains an important part of the IT services landscape. As this theme gained traction during market hours, the reaction in IT stocks became sharper and more broad-based.

The spillover into realty reflected how quickly risk sentiment can move across linked sectors when IT sentiment turns negative. Realty is often linked to urban demand and commercial activity, which are influenced by the IT business cycle. In this session, that linkage strengthened late in the day and reinforced the broader sector rotation.

Price and Technical Snapshot

The broader market move took place on February 24, 2026, while the stock prices and technical indicators below are from the close on February 23, 2026.

• TCS: price 2676.30, day change -0.37%, traded volume 4698968, average volume 4900213, RSI (14) 25.38, MACD line -132.3303, MACD signal -110.1511, 20-day moving average 2921.90, 50-day moving average 3104.17, trading below both moving averages.
• HCLTech: price 1426.20, day change -0.72%, traded volume 2565681, average volume 3341261, RSI (14) 23.12, MACD line -60.9688, MACD signal -45.7325, 20-day moving average 1569.23, 50-day moving average 1625.46, trading below both moving averages.
• Tech Mahindra: price 1440.90, day change -1.10%, traded volume 2624673, average volume 2642884, RSI (14) 24.60, MACD line -49.2416, MACD signal -26.7102, 20-day moving average 1611.74, 50-day moving average 1619.73, trading below both moving averages.
• Infosys: price 1327.50, day change -1.90%, traded volume 12886673, average volume 18873142, RSI (14) 20.59, MACD line -73.9856, MACD signal -58.4429, 20-day moving average 1493.26, 50-day moving average 1578.85, trading below both moving averages.

Across all four IT names, price was below both the 20-day and 50-day moving averages on the indicator date. RSI (14) readings were weak, and the MACD line stayed below the MACD signal in each case, matching the negative momentum visible at that close.

Closing Context

The key takeaway from this session was the speed of transmission from IT weakness into other risk-sensitive sectors. Tech Mahindra remained central to the sector story, but simultaneous pressure in TCS, HCLTech, and Infosys showed a broader basket move. With realty also participating in the decline, the day closed as a sector-rotation event rather than an isolated single-stock reaction.