Indian IT stocks fall on AI disruption concerns
India's IT index fell 5.8% as AI disruption fears hit software firms. TCS dropped 9% while analysts warned that AI-led deflation may outweigh new demand growth.
India IT stocks headed for their worst day in four months on Wednesday, with the Nifty IT index falling 5.8% to 29,310.25 points. The decline follows renewed fears that artificial intelligence will disrupt traditional software models, triggering a broad sell-off across the sector. This reversal erased 7% in gains from the previous two sessions, highlighting investor concerns over the $300 billion sector's long-term viability.
### AI Deflation Risks Outweigh Growth Hopes The downturn was led by Tata Consultancy Services, which plunged 9% during the session. Other major players followed, with Infosys dropping 4.3% and Wipro falling 3.7%. Mid-tier firms faced similar pressure as Coforge and Persistent Systems both shed 5.7%.
