OFSS shares tumble 7%; Wipro, Coforge, Infosys shares down up to 2%. Why are IT stocks under pressure today?

OFSS shares plunged to Rs 11,061 apiece, on track to record the sharpest single-day fall since late July. It is currently the top loser on the Nifty IT index, which is down over half a %.

Why OFSS shares are falling today?

This came after the Financial Times reported that around $18 billion in loans tied to an Oracle-leased data centre in New Mexico has come under pressure, with loans quoted at 89 to 91 cents on the dollar by syndicate banks including Santander and Jefferies.

This came amid ongoing concerns regarding the escalating local opposition to the 1,400-acre “Project Jupiter” campus in Dona Ana County over fears it would impact water supply and air quality could derail Oracle’s massive AI infrastructure build-out, the FT report said. OFSS is the Indian subsidiary of Oracle.

Also read | Oracle’s $18 billion data center debt under pressure: FT

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Trump extends $100K H-1B visa fee

Meanwhile, other IT stocks came under pressure after US President Donald Trump extended the $100,000 (around Rs 83 lakh) fee on employers for bringing in foreign workers on H-1B visas by another year. Trump, in a presidential proclamation issued on Friday, said the 2025 decision to impose the fee led to a 92% decrease in H-1B registrations by large IT outsourcing firms.
“An extension of the 2025 Proclamation will continue to protect the economic and national security interests of the United States, improve labour market access for American workers and graduates, and ensure that employers recruit only the most highly-skilled and essential alien workers when needed in line with the original intent of the program,” Trump said. Indians remain the single largest beneficiary group of the US H-1B visa program.IT stocks have seen sharp upswings and downswings this year. Earlier this month, Indian IT stocks sharply rallied after OpenAI and Anthropic leaders called for a slowdown in AI development to manage risks and protect humanity, boosting sentiment for the tech stocks on Dalal Street. HSBC earlier this year said India can serve as an “anti-AI” diversifier as sharp swings in technology-exposed markets encourage foreign investors to broaden their portfolios. “Any narrative around regulatory restrictions on the use of AI may actually have a positive influence on Indian IT stocks,” Bloomberg quoted Deven Choksey, managing director at investment advisory firm DRChoksey FinServ. “When the narrative shifts from unchecked development to regulated and responsible use of AI, short-covering backed by fresh buying in frontline IT stocks is quite possible,” he added.

Goldman Sachs on Indian IT stocks

Goldman Sachs however issued a cautious note, stating that IT services demand remains weak despite broadly robust tech spending, ET Now reported. It added that AI-led deflation has become more broad-based and could continue for another one to two years.

IT services firms can help clients customise AI solutions, while specific jobs may not require frontier models, Goldman Sachs was quoted as saying by ET Now. It added that GCCs continue to grow faster than IT services companies, bringing more work in-house. It noted that competition remained elevated across both new deals and renewals.

Also read | RIL selloff wipes off Rs 4 lakh crore from market value as shares drop 21% in 2026 so far. Should you buy now?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.