From Infosys to TCS: How mutual funds' biggest IT holdings have changed since the sector's peak
From Infosys to TCS, mutual funds’ major IT holdings have seen significant changes since the sector’s 2024 peak.
Representative image: From Infosys to TCS, mutual funds’ major IT holdings have seen significant changes since the sector’s 2024 peak.
Nearly two years after the Nifty IT index touched its all-time high in December 2024, the value of mutual funds’ holdings in several major IT stocks has fallen sharply. Infosys and Tata Consultancy Services (TCS), two of the biggest IT holdings in mutual fund portfolios, have seen their holding values decline by nearly 40 percent each.
The Nifty IT index touched a record high of 45,995.80 on December 13, 2024, but has since come under pressure amid concerns over artificial intelligence (AI) disruption, weak global technology spending and slowing growth prospects.
By October 19, 2026, the index had fallen to 31,516, a decline of 31.48 percent from its peak. At the time of filing this story on October 21, the index was trading at 32,162.
But how much has changed in mutual funds’ biggest IT holdings since that peak? An analysis of ACE MF data compares the top 10 IT stocks by mutual fund holding value in December 2024 and September 2026, revealing which stocks have lost the most value, which have held up better and how the rankings have shifted.
How have the biggest IT holdings changed since December 2024?
Infosys continues to hold the top position, although the market value of mutual fund investments in the company has fallen from Rs 41,585.77 crore in December 2024 to Rs 25,092.56 crore in September 2026, a decline of 39.66 percent.
TCS recorded a similar decline of 39.94 percent, with its holding value falling from Rs 15,712.39 crore to Rs 9,436.96 crore.
The decline extended to other major IT stocks, including HCL Technologies, Persistent Systems, Coforge and Mphasis.
Tech Mahindra, however, was an exception. Its holding value increased by 13.07 percent, from Rs 6,862.60 crore to Rs 7,759.30 crore, making it the only stock among the eight common names to record an increase.
Which IT stocks have gained or lost their place in the top 10?
Despite the decline in holding values, the biggest IT stocks in mutual fund portfolios have largely remained the same.
Eight stocks from the December 2024 top 10 continue to feature in September 2026. KPIT Technologies and Wipro have dropped out of the rankings, while Microsoft and Hexaware Technologies have entered, with holding values of Rs 3,657.57 crore and Rs 3,226.91 crore, respectively.
Infosys, Coforge, Persistent Systems, HCL Technologies and TCS retained the top five positions, while Tech Mahindra moved ahead of Mphasis.
What changed between August and September 2026?
The latest monthly comparison shows that the holding value of nine of the 10 IT stocks declined in September.
TCS recorded the sharpest percentage fall at 24.86 percent, while Infosys saw the largest absolute decline of Rs 4,880.08 crore. Microsoft was the only stock among the September top 10 to register an increase, with its holding value rising 1.79 percent.
Does falling holding value mean mutual funds are selling IT stocks?
Not necessarily. The market value of mutual fund holdings depends on both the number of shares held and their market prices. Falling stock prices can reduce holding value even without any selling, while changes in shareholdings can also affect the figures.
The ACE MF data therefore shows how the value of mutual fund investments in major IT stocks has changed, but does not establish how much of the decline resulted from fund managers selling shares.
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