Mint Quick Edit | The odds seem stacked against Indian IT players: do they have a way out?

Mint Editorial Board, mint_print
1 min read10 Sep 2026, 07:00 AM IST
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Woes have arisen along with investor concerns over India’s IT sector lagging on artificial intelligence (AI). (Pexels)
Summary
Indian information technology (IT) stocks can't seem to catch a break. Between America’s bars for foreign workers and a possible Fed rate hike, they have unenviably little space to make their hope of riding an AI wave materialize.

India’s equity market has been weak for a while, but information technology (IT) shares took a particularly hard beating on Wednesday. The IT index of BSE was down about 3% against a 1%-odd decline in the broader Sensex. Coforge fell more than 5% after its chairman resigned amid concerns over its board evaluation process.

Cognizant saw a key labour-certification process needed for talent management suspended by the US Department of Labor. The Trump administration’s disapproval of foreign workers in the US has already spelt trouble for Indian IT service providers, with hiring non-US citizens for work in America getting costlier as a result.

Meanwhile, strong payroll data has made a Fed rate hike more likely. If borrowing costs climb, US businesses may cut budgets; that could hurt Indian IT firms.

Such woes have arisen along with investor concerns over India’s IT sector lagging on artificial intelligence (AI). That service providers have a valuable role of expertise in helping clients adopt AI and adapt to it has been a narrative gaining ground, but investors may want to see the money in this opportunity before they buy it. Unfortunately, it seems to be taking rather long.

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