Indian stocks decline as IT sector faces AI disruption fears after RBI holds rates

Indian shares fell on Friday as the central bank held interest rates steady. IT stocks led the decline amid growing global fears regarding AI-linked disruption.

Insights:
The Reserve Bank of India announced on February 6, 2026, that it has kept the key repo rate unchanged at 5.25 percent. During its policy meeting in India ININ, the central bank pointed to benign inflation and a stable growth outlook as the rationale for the hold. However, the Reserve Bank of India also cautioned that external headwinds have intensified since the previous meeting in December 2025.
A man walks near a screen outside the Bombay Stock Exchange (BSE) in Mumbai, India, August 28, 2025. REUTERS/Francis Mascarenhas
A man walks near a screen outside the Bombay Stock Exchange (BSE) in Mumbai, India, August 28, 2025. REUTERS/Francis Mascarenhas
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