IT Stocks Plunge After Infosys Hikes Salaries; Analysts Weigh Future Impact

• Infosys raised entry-level salaries, offering up to Rs 21 lakh for specialized tech roles, impacting the IT sector.
• Following the announcement, IT stocks fell up to 4%, pushing the Nifty IT index down over 1%.
• Analysts are divided: some foresee short-term margin pressure and a new industry benchmark, while others prioritize global demand and deal pipelines.
• The salary hike reflects intense competition for AI, cloud, and advanced engineering talent, aiming to curb attrition and attract skilled freshers.
• Long-term outlook suggests a shift towards specialized skills, with companies monetizing AI/cloud expected to justify higher salaries and achieve stable growth.

Why It Matters: Infosys's salary hike signals IT's talent war, pressuring margins short-term but driving long-term specialization.