IT Market Faces Major Downturn in 2025 as Investor Sell-Off Intensifies

Foreign institutional investors have dramatically pulled out from Indian IT equities in 2025, selling approximately ₹50,000 crore worth of stocks—making IT the biggest casualty of the broader equity outflows, which total around ₹95,600 crore so far. Consequently, the Nifty IT index has plunged by 25%, establishing itself as the worst-performing sector of the year. Analysts cite concerns over layoffs, geopolitical uncertainties, and overblown expectations around artificial intelligence as key factors intensifying the downturn. Yet, brokerages remain divided, with some spotting selective value opportunities even amid the sell-off.