Nifty IT Crashes Over 3%: Why Infosys, TCS and HCL Tech Stocks Are Falling Today

Mumbai | 12 May 2026 

Indian IT stocks witnessed heavy selling pressure on Tuesday, 12 May, after OpenAI unveiled a new AI-focused venture aimed at helping enterprises deploy artificial intelligence systems at scale. 

The Nifty IT index dropped 3.3% to a day’s low of 28,351 in early trade, making it one of the worst-performing sectoral indices on Dalal Street. 

Why Are IT Stocks Falling Today? 

The sell-off followed OpenAI’s announcement of the OpenAI Deployment Company, also called DeployCo. The venture launches with more than $4 billion in initial investment and a reported pre-funding valuation of around $10 billion. 

Frontline IT counters bore the brunt of the decline: 

• Persistent Systems: down 4.25% 

• Tata Consultancy Services: down 3.9% 

• Infosys: down 3.7% 

• Coforge: down 3.23% 

HCL Tech, Tech Mahindra, L&T Tech, LTIMindtree, Wipro and Mphasis also lost over 2.5% each in trade. 

What Is OpenAI’s DeployCo? 

DeployCo will focus on helping businesses integrate AI tools into real-world operations. OpenAI said the entity will use the capital to scale operations and acquire companies that can accelerate enterprise AI adoption. 

The ChatGPT-maker has tied up with 19 investment firms, consultancies and system integrators for the venture. 

Private equity giant TPG is the lead investor. Advent International, Bain Capital and Brookfield have joined as co-lead founding partners. Other investors include Goldman Sachs, SoftBank and Warburg Pincus. 

Consulting firms Capgemini, Bain & Company and McKinsey & Company are also part of the initiative. 

“The next stage of enterprise AI will be defined by how effectively businesses can deploy this technology into real-world use cases,” OpenAI said. 

The company added, “As models become more capable, businesses can apply AI to larger, more important parts of how they operate.” 

DeployCo’s First Acquisition 

DeployCo has announced its first acquisition, London-based AI consulting and engineering company Tomoro. The deal will bring nearly 150 AI engineers and deployment specialists into OpenAI’s ecosystem. Financial details were not disclosed. 

Founded in 2023 alongside OpenAI, Tomoro works with global brands including Mattel, Red Bull, Tesco and Virgin Atlantic. 

OpenAI said more than one million businesses have adopted its products and APIs. The company believes the next phase of enterprise AI growth will depend on how efficiently organisations integrate AI into daily operations. 

Rising Competition in Enterprise AI 

The announcement comes days after Anthropic launched a separate $1.5 billion AI services platform backed by investors including Blackstone and Goldman Sachs, signalling intensifying competition in the enterprise AI deployment space. 

Outlook 

OpenAI said the newly formed entity will use the capital to rapidly scale operations and pursue further acquisitions in the enterprise AI deployment space. Market participants will track how Indian IT majors respond to the new competitive dynamic in coming sessions. 

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