Indian IT shares reach three-year low on AI disruption fears
Indian IT shares hit a three-year low as OpenAI's new venture fuels disruption fears. Analysts suggest AI spending is crowding out traditional service demand.
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India's Nifty IT index fell 3.6% on Tuesday as a new OpenAI venture reignited fears of AI-driven disruption. The index hit its lowest level since May 2023, extending a 25.4% year-to-date decline for the sector. Investors are pivoting away from traditional outsourcing as global AI spending crowds out demand for traditional IT services.
