Nifty IT Index Declines Over 2% Amid Concerns Over AI's Impact on Sector

IT Sector Takes a Hit as Global Technology Stocks Decline

The Indian information technology sector experienced a significant downturn on Thursday, with the Nifty IT index plummeting more than 2 percent to become the worst-performing sectoral index. This decline was largely driven by weakness in global technology stocks and fresh concerns over the impact of artificial intelligence on growth prospects for IT services companies.

At 9:18 am, the Nifty IT index stood at 27,595, a decline of 2.4 percent. The sector significantly underperformed the benchmark Nifty 50, which was down 0.5 percent at 23,099. Heavyweight IT stocks such as HCL Technologies and Infosys led the decline, with HCL Technologies falling 3.5 percent and Infosys declining 2.5 percent.

The list of Nifty losers was dominated by heavyweight IT stocks, with Tech Mahindra, Wipro, and Tata Consultancy Services (TCS) falling between 1.4 percent and 2 percent. Five major IT stocks featured among the top losers on the Nifty.