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IT Stocks Plunge Amid AI Fears and Rate Cut Woes
12 Feb
Summary
- Indian indices fell, led by significant selling in IT stocks.
- Nifty IT dropped nearly 7%, with TCS and Infosys down 6%.
- US jobs data and AI disruption fears fueled the stock sell-off.
Indian equity benchmarks concluded Thursday's trading session with notable losses, heavily influenced by substantial selling in technology stocks. The Nifty 50 index closed down by 146.65 points, settling at 25,807.20, while the BSE Sensex saw a decline of 558.72 points, reaching 83,674.92.
The IT sector was particularly hard-hit, experiencing a sharp fall of approximately 7%. Midcap firm Coforge witnessed the steepest decline within this segment. The Nifty IT index itself closed 6.5% lower, with all constituent stocks trading in negative territory. Sector giants such as Tata Consultancy Services (TCS) and Infosys each fell by 6%.
This widespread sell-off across IT stocks is attributed to the ongoing apprehension surrounding the potential for artificial intelligence to cause disruptions within the sector. Further dampening market sentiment was the release of US jobs data on Wednesday, which proved stronger than anticipated, thereby reducing expectations for near-term interest rate cuts by the US Federal Reserve.
