Market dynamics for Indian IT giants shifted significantly on February 13, 2026, as US economic data and global technology trends intersected. ADR Resilience Amid US Inflation Shift Infosys and Wipro American Depository Receipts (ADRs) displayed unexpected resilience despite a volatile session on the Nasdaq. This movement coincided with the release of the January 2026 Consumer Price Index (CPI) report, which showed inflation cooling to **2.4%** on an annual basis. This figure came in lower than the **2.5%** expected by analysts, marking the slowest pace of price growth since mid-2025. The core inflation rate also eased to **2.5%**, fueling market speculation that the Federal Reserve may pivot toward rate cuts by June 2026. Domestic IT Sector Correction In contrast to the offshore ADR performance, the domestic Nifty IT index experienced a sharp correction. On February 13, the index plummeted over **5%** intraday, with heavyweights hitting fresh 52-week lows. Infosys shares dropped as much as **7.5%** to approximately **1,281.50**, while Wipro touched a low of **209.15**. This domestic sell-off was intensified by broader fears that traditional outsourcing models are facing structural revenue erosion from rapid advancements in generative AI. Employment and AI Disruptions Stronger-than-expected US employment figures have created a complex backdrop for the sector. January jobs data showed a robust labor market with unemployment at **4.3%**, suggesting that while inflation is cooling, the economy remains strong enough to delay aggressive monetary easing. Simultaneously, the sector is grappling with "AI deflation" risks. Industry analysts estimate that **9% to 12%** of traditional IT services revenue could be at risk over the next three to four years as clients utilize AI to automate routine coding, testing, and maintenance tasks. Market Performance Summary The tech-heavy Nasdaq Composite felt the heat of a broader tech sell-off, tumbling **2%** to close at **22,597.15** points. While the cooling CPI provided a momentary lift to sentiment, the high CBOE Volatility Index (VIX) at **20.82** signals continued caution. Investors are currently weighing the benefits of potential lower interest rates against the long-term threat of AI-driven disruption to headcount-based revenue models. Foreign investors have responded by offloading an estimated **$8.5 billion** in Indian IT stocks over the past year.