The tech stock landscape is currently facing significant turbulence, with the Nifty IT Index experiencing a notable decline of over 3%, nearing its 8-month lows. So far in 2025, this crucial tech sector index has plummeted more than 5%, and it still sits approximately 15% above its 52-week lows. Alarmingly, several stocks within the index have witnessed staggering declines, with some down by over 20% this year.

Major Tech Stocks Facing Decline in 2025

As the tech sector grapples with challenges, a handful of stocks have been particularly hard-hit, recording double-digit losses. Here’s a closer look at five tech stocks that have faced the steepest declines this year.

MphasiS: A Notable Decline of 23.74%

MphasiS has seen its share price fall dramatically, dropping over 4% in just one day on March 12. This year, it has suffered a 23.74% decline, with an 18% drop occurring in the last month alone. Analysts at Kotak Institutional Equities have issued a ‘Reduce’ rating, citing concerns over sluggish recovery in discretionary spending and the uneven rebound in various sectors. The growing impact of AI adoption by enterprises also adds to the uncertainty surrounding this stock.

Coforge: Down 23.71% in 2025

Coforge is another stock that has faced considerable pressure, reflecting a 4% decrease intra-day on March 12, contributing to a 23.71% drop this year. Despite this downturn, Morgan Stanley maintains an Overweight rating but has lowered the target price from Rs 11,500 to Rs 9,400 per share. The firm remains optimistic about Coforge’s scalability potential, although revenue growth and valuation multiples remain a concern.

Persistent Systems: Eroding by 21.27%

Persistent Systems has also experienced a challenging year, with its shares down nearly 3% in recent trading. So far in 2025, the stock has seen a 21.27% decline, compounded by a 10% drop over the past month. Nevertheless, global brokerage CLSA views this stock as a potential multibagger, citing its impressive revenue influx of over $1.43 billion and a target of $5 billion by fiscal year 2031.

LTI Mindtree: Down 20.76% This Year

LTI Mindtree has not been immune to the downturn, with shares dropping over 20% in 2025 and exceeding 21% in losses over the last month. However, Motilal Oswal has identified it as a preferred choice within the tech sector, attributing its potential to favorable conditions in the BFSI and hi-tech verticals, which are expected to yield significant returns.

HCL Tech: A 20.26% Decline

HCL Tech has also faced a rough patch, with a 20.26% decline in 2025 and a 10% loss in just the past month. Despite the challenges, Axis Securities recommends a buy, driven by strong Q3 earnings and emerging signs of demand recovery, which they expect to improve in the upcoming quarters.

Additional Stock Performances

Aside from these major players, other tech heavyweights are also feeling the pressure. Notable mentions include:

• Tech Mahindra: down 17.11% in 2025.
• TCS: down 14.77% so far this year.
• Wipro: down 12.14% in 2025.
• Infosys: down 16.74% this year.

As market conditions remain volatile, investors will need to stay informed about these developments within the tech sector to navigate their portfolios effectively.