Domestic technology shares fell sharply on Friday after Infosys announced a big pay rise for new graduates.
IT Stocks Slide After Salary News
- Coforge – down 4%
- Mphasis – down about 1.5%
- Tech Mahindra – down about 1.3%
- LTIMindtree – down about 1.2%
- TCS – down about 1.1%
- HCL Technologies – down about 1%
- Infosys – down 0.5% at ₹1,657
The Nifty IT index slipped 1% to around 38,600, likely ending the week 0.2% lower.
Infosys Salary Move
Infosys said it will pay fresh engineering and computer‑science graduates up to ₹21 lakh for the 2025 batch. The company plans both on‑campus and off‑campus hiring, focusing on AI‑related roles such as Specialist Programmer.
Why Salaries Are Rising
For years, entry‑level pay in Indian IT has stayed almost flat, while senior executives saw big raises. The rise of AI and the need for deeper technical skills are pushing firms to offer higher starting salaries.
- CEO median pay grew 835% from FY12 to FY22 (₹3.37 cr → ₹31.5 cr).
- Fresher median pay rose only 45% in the same period (₹2.45 lac → ₹3.55 lac).
Impact on Investors
Higher entry‑level costs could squeeze profit margins for IT firms, at least in the short term, which is why stocks reacted negatively. Retail investors should watch whether the higher pay leads to better AI talent and longer‑term growth.
Disclaimer
Remember, this is just an overview, not a prediction. Do your own research or talk to a qualified advisor before making any investment decisions.