Infosys, Wipro, and TCS Shares Under Pressure Following US SaaS Stock Sell-Off
Indian IT giants Infosys, Wipro, and Tata Consultancy Services (TCS) are facing scrutiny as a sharp sell-off in US-listed software-as-a-service (SaaS) stocks reverberates through global markets. The overnight plunge in US SaaS companies has cast a shadow over the Indian IT sector, prompting investors to reassess their positions in these bellwether stocks.
The downturn in US SaaS stocks is attributed to rising concerns about potential disruption from artificial intelligence (AI) and high valuations within the sector. Investors are worried that AI tools could enable enterprise software customers to develop in-house solutions, diminishing the need for subscriptions to existing SaaS products. Additionally, the fear is that AI startups will take market share from established SaaS leaders. This has led to a broad-based sell-off, with the iShares Expanded Tech-Software Sector ETF (IGV) dropping significantly in January.
The impact of this "SaaSpocalypse," as termed by Jefferies, isn't confined to equity markets. It's rapidly spreading to the private credit sector, which provides substantial financing to the software industry. The S&P North American software index has seen its worst month since October 2008, plummeting 15% in January.
Infosys: Infosys, a major player in the Indian IT sector, has seen its American Depositary Receipts (ADRs) react negatively to these developments. On October 17, 2025, Infosys ADRs fell sharply after the company's Q2 results, despite beating revenue estimates. While revenue increased slightly, profit fell more than expected, and EBIT margins also disappointed the market. As of February 3, 2026, Infosys's stock price was ₹1,656.00. Over the past year, the stock has had a high of ₹1,924 and a low of ₹1,307.
Wipro: Wipro, another prominent Indian IT company, has also felt the impact. Wipro's ADRs experienced a notable decline alongside Infosys. As of December 3, 2025, Wipro emerged as a top gainer on the Nifty IT index, climbing over 2%. However, as of February 3, 2026, Wipro's stock traded between ₹242.28 and ₹259.89. The 52-week range for Wipro is ₹324 and ₹225.
TCS: Tata Consultancy Services (TCS) is also under pressure. In July 2025, TCS announced plans to cut its global workforce, which led to a selloff in large-cap IT names, including Infosys and Wipro. As of February 3, 2026, TCS's stock price was ₹3,225.30, a slight decrease from the previous day. The 52-week high/low for TCS is ₹4,161.00 - ₹2,867.55.
Broader Market Impact and Analysis: The overnight sell-off in US SaaS stocks has intensified concerns about the future of the IT sector. The Nifty IT index has reflected this uncertainty, experiencing fluctuations. Investors are closely monitoring the situation, with many analysts suggesting that while the sector might be oversold and due for a bounce, it will take time to build a new base. Some analysts believe that the current situation presents a buying opportunity, particularly for larger companies that are more resilient and better positioned to defend their market share. Others are warning of potential disruption risks.