KPIT outlook shock sends IT stocks sliding as growth worries intensify

Shares of KPIT Technologies plunged 17 percent after the company warned of weak financial performance in Q1 and Q2 of FY27, citing sudden actions by some European OEMs triggered by recent profit warnings. The warning dragged the broader mid-cap IT pack lower, with Coforge, Tata Elxsi and L&T Technology Services falling 3-6 percent. The Nifty IT index dropped 2 percent to emerge as the biggest sectoral loser, and has now declined 32 percent year-to-date amid concerns that AI-driven productivity gains are weighing on outsourcing demand.