Indian IT stocks extended losses for a fourth straight session as investors reduced exposure amid softer growth visibility, muted client spending and fresh fears of AI-driven disruption. The Nifty IT index slid sharply, dragging major players like Infosys and Tata Consultancy Services lower on cautious guidance and deflationary pressure.
Indian IT shares fell sharply on Tuesday, dragging the Nifty IT index down 3.7% to a three-year low. The selloff followed reports of OpenAI making a major push to speed AI adoption, fueling fears that the move could disrupt traditional software services business models and margins for established players.
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The Nifty IT index fell sharply on Tuesday, dropping 3.58% to around 28,358 points, as the Indian rupee slid to an all-time low of 95.32 against the dollar. Foreign fund outflows and a jump in global crude prices to about $105 fueled margin fears, pulling down major names like TCS and Infosys during mid-day trade.
Indian IT stocks took a sharp hit as Infosys, TCS and peers fell as much as 5%, pulling the Nifty IT index down around 3%. The selloff followed OpenAI’s launch of a Deployment Company, reviving worries that AI disruption could accelerate for IT services. Sentiment stayed weak even as Wall Street logged record highs and the rupee weakened.
India’s Nifty IT index slid about 10% in a single week, its worst stretch since March 2020, as weak Q4 earnings and cautious guidance spooked investors. Heavy selling accelerated amid FIIs reducing exposure and deteriorating technical indicators. While some investors see value in mid-cap IT names over the long run, analysts warn downside risk may persist.
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