Indian IT stocks plummet, AI disruption fears shake the sector

LootboxPhobia · 2026-02-13T22:43:10+00:00

India's information technology stocks fell sharply on Friday due to continued weakness in global tech stocks and concerns over the impact of artificial intelligence. The Nifty IT index dropped over 5%, with individual stocks such as Tata Consultancy and Infosys experiencing significant declines, reflecting worries about demand for traditional IT outsourcing and the negative impact of Wall Street's weakness on market sentiment.

LootboxPhobia

2026-02-13 22:43:10

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Investing.com - Indian IT stocks plummeted on Friday, following the global tech sell-off amid growing concerns over AI-driven disruption and weak Wall Street performance dampening investor sentiment.

The Nifty IT index fell over 5%, hitting a multi-month low. The sub-index is set to decline more than 11% for the week.

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Tata Consultancy Services (NSE:TCS) shares dropped about 5%, after falling nearly 6% in the previous trading session.

Infosys (NSE:INFY) declined nearly 7%, following a 6% drop on Thursday. HCL Technologies (NSE:HCLT), Wipro Ltd (NSE:WIPR), and Tech Mahindra (NSE:TEML) fell between 4% and 6% on Friday.

The sell-off was driven by renewed concerns that rapid development of generative AI tools could erode demand for traditional labor-intensive outsourcing contracts, which are a key revenue driver for Indian IT companies.

Investors note that increasingly sophisticated AI agents launched by global tech firms can automate coding, customer support, and backend functions.

Wall Street’s overnight decline further worsened market sentiment. Strong US economic data also dampened expectations of a Federal Reserve rate cut in the near term, adding pressure on growth-oriented tech stocks worldwide.

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