Tech Turbulence: AI Disruption Sends IT Stocks Spiraling
IT stocks plunged as global concerns mounted over AI advances disrupting traditional software models. Infosys, TCS, LTIMindtree, and others faced significant losses, with their combined market valuation eroding by Rs 1.66 lakh crore. The Nasdaq Composite index fell as tech shares dragged markets. AI startup Anthropic's new tools fueled the selloff.
- Country:
- India
On Wednesday, IT stocks experienced a sharp decline, aligning with a global selloff in tech shares. Infosys led the drop with a 7.19% fall, alongside notable losses for Tata Consultancy Services and LTIMindtree, as market valuation suffered a significant erosion of Rs 1.66 lakh crore.
The BSE IT index experienced a notable slip of 5.49%, closing at 35,109.51, as concerns grew over the impact of AI on traditional software businesses. Emerging AI technologies, such as Anthropic's new workflow automation tool, reignited fears of disrupted business models and diminishing profitability within the industry.
Meanwhile, in the US, the Nasdaq Composite index fell by 1.43% on Tuesday, with IT stocks being the primary contributors to the market downturn. The previously strong 30-share BSE Sensex saw limited gains, closing 78.56 points higher, as investors grappled with the implications of AI advancements on the sector's future.
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