IT rout drags Indian markets; sector on track for worst month in 23 years on AI fears
Indian equity benchmarks tumbled on Tuesday, dragged by information technology stocks which are on course for their worst month since April 2003 on persistent fears of AI-driven disruption. The Nifty 50 fell 1.12% to 25,424.65 and the BSE Sensex shed 1.28% to 82,225.92. IT stocks slumped 4.7% to a 30-month low. The sub-index has lost 21% so far in February, wiping out an aggregate $68.5 billion in market value from its 10 constituents. In contrast, AI-linked stocks in South Korea and Taiwan helped those markets notch record closing highs as Asian markets steadied after a wobbly start on Tuesday. If losses hold in the next three sessions, the Nifty IT index will post its worst monthly performance in about 23 years, when the sector cracked on geopolitical tensions due to the U.S.-Iraq war, poor earnings from Infosys and SARS virus outbreak in South-East Asia. READ MORE: Indian shares gain on US tariff relief, IT firms extend losses Rapid developments in AI are spurring questions about the long-term outlook for India’s technology sector, even as executives frame disruption as an opportunity.