Infosys’ ADRs up 4%, Wipro’s up over 2% despite weak trading on Wall Street

Infosys’ American Depositary Receipts (ADRs) reversed Thursday’s losses on Friday, rising 4% in early trade to hit a day’s high of $14.77, while Wipro’s ADRs rose 2.2% to $2.33 despite selling pressure on the Nasdaq Composite and weak trading in domestic IT stocks for yet another session today.Major indices on Wall Street were trading lower around 10:16 a.m. ET (8:47 p.m. Indian time), with the Nasdaq Composite down 195 points, or 0.9%, to 22,597.15. The S&P 500 fell 0.11% to 6,825.45, while the Dow Jones Industrial Average fell 81.77 points, or 0.17%, to 49,370.20.

Heavyweights such as Nvidia, Cisco Systems and Apple fell by as much as 2% around this time.Today, US CPI data for January 2026 was released, showing that annual inflation rates eased to 2.4% in January 2026. This was below forecasts of 2.5%, making it the lowest level since May. Inflation pressures fell from 2.7% in each of the previous two months.

This could impact the Fed’s decision on rate cuts, forcing the Fed to move slowly in its policy decision.

Earlier today, the Nifty IT index fell 1.4%, continuing its journey south. In the 10-stock index, 9 were in the red, while Persistent Systems was the only gainer.

The worst hit was Coforge, which fell 4.4%. This was followed by Wipro and Tata Consultancy Services (TCS), each down 2%. Others including OFSS, LTIMindtree, HCL Technologies, Infosys, Mphasis and Tech Mahindra fell between 2% and 0.2%. Nifty IT is the worst performing index, down 22% in the last twelve months.

Vinod Nair, Head of Research at Geojit Investments, has attributed the current decline in Indian IT stocks to stronger than expected employment data in the US, with a marginal decline in the unemployment rate, reducing expectations of an early rate cut by the US Federal Reserve. These pressures were exacerbated by ongoing concerns about AI-induced disruption in the sector, he said.

On AI-related fears, Nair said AI is bringing a structural shift in Indian IT services by shortening timelines and automating tasks, putting pressure on the traditional headcount-based outsourcing model.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)