Adani Power Surpasses Infosys in Market Value

Adani Power Surpasses Infosys in Market Capitalisation Amid IT Sector Decline

On May 27, Adani Power overtook Infosys in terms of market capitalisation, a development that reflects the recent decline in the IT major. At its intraday high of Rs 252.65, Adani Power's market capitalisation stood at Rs 4.82 lakh crore, surpassing Infosys' market capitalisation of Rs 4.75 lakh crore.

In the last one year, Adani Power shares have seen a significant rise of 125%, whereas Infosys shares have declined by 26%. This divergence in performance is likely a result of the growing investor concerns around the impact of artificial intelligence on traditional IT services. Earlier this month, Infosys shares fell to a three-year low following the announcement of a new AI venture by OpenAI.

The Nifty IT index has also been affected by these concerns, falling 3.6% to its lowest level since May 2023. Analysts at HSBC have noted that India's top-tier IT firms have largely failed to meet street expectations for earnings in the March quarter as well as in their outlooks for the new financial year. Furthermore, HSBC warned that strong global spending on AI may be "crowding out" demand for traditional IT services.

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The launch of a new company by OpenAI, backed by over $4 billion, has added to the challenges faced by Indian IT firms. This company aims to embed engineers into organisations to identify where AI can make the most impact, targeting enterprise clients and further disrupting the business model of Indian IT firms.

Indian IT stocks are unlikely to attract positive investor interest unless global AI activity, cloud capex growth, and cloud revenue momentum slow, according to HSBC. The industry's sensitivity to U.S. economic uncertainty and corporate technology spending trends has been a major concern, particularly given that Indian IT companies derive a significant share of their revenue from North America.

The IT sector has been under pressure for much of 2026, starting with a February rout following the roll-out of Anthropic's Claude Code and fears of rapid advances in generative AI disrupting demand for traditional IT and professional services. As a result, India's IT stocks have slid 25.4% so far this year.

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