Indian IT Stocks Face Heat as Chip Selloff Hits Nasdaq

Indian IT Stocks Under Pressure as Semiconductor Stocks Crater Global semiconductor stocks dropped 6.3% in a single session, one of the sharpest single-day declines in the sector this year. The Nasdaq fell 0.65% alongside it, and Indian IT investors should pay attention. When chip stocks fall that hard, it's rarely just about chips. Semiconductors are a leading indicator for enterprise technology spending. If chipmakers are seeing demand pull back, the companies building software and running IT infrastructure for those same enterprise clients feel it next. [TCS](/stock/TCS), [Infosys](/stock/INFY), and [Wipro](/stock/WIPRO) collectively pull over 55% of their revenues from North American technology and BFSI clients. A slowdown in US tech capex doesn't stay in Silicon Valley. It flows into deal deferrals, scope reductions, and slower headcount requests, showing up in Indian IT earnings one to two quarters later. That lag is what makes this semiconductor selloff worth taking seriously, even if Indian markets haven't fully priced it yet. The rupee adds another layer. A risk-off session of this magnitude typically pressures emerging market currencies. A weaker rupee provides a partial earnings hedge for IT exporters (revenue in dollars, costs in rupees), but it's a thin cushion against the broader demand concern. Sector Impact: What the Numbers Say for TCS, INFY, WIPRO, HCLTECH NSE: TCS and NSE: INFY carry the most exposure given their dependence on large enterprise technology clients in the US and Europe. TCS reported 28.4% of Q4 FY25 revenue from its communications and media vertical alone, a vertical that tracks semiconductor and consumer tech spending closely. Any guidance revision from US tech primes in the next earnings cycle could read straight into TCS deal flow. NSE: HCLTECH and NSE: LTIM have different exposure profiles. HCLTech's engineering and R&D services segment, roughly 19% of revenue, is more directly tied to semiconductor and product engineering ...