Indian IT stocks lose $22.5 billion in market value as AI worries mount
Indian software exporters fell 2% on Friday, extending their weekly slide to 7% and erasing about 2 trillion rupees ($22.5 billion) in market value, as rapid advances in AI deepened fears that the high-margin application-services business could come under pressure.
The IT index was the worst?performing sector on the day and was on track for its sharpest weekly fall in more than four months.
Fresh AI?driven automation tools from U.S. firms Anthropic and Palantir have fuelled concerns over shorter project timelines and potential disruption to the software industry’s labour?intensive delivery model, triggering a broad sell?off in global tech stocks this week.
India’s $283?billion IT sector relies heavily on deploying large workforces for client projects.
The IT index has lost nearly 18% since the start of 2025 and posted its biggest drop in six years on Wednesday.
All ten constituents of the sub-index traded lower on Friday, with Coforge down 3.8%.
Shares of India's top IT services firms TCS and Infosys slipped nearly 2% each. The benchmark Nifty 50 was down 0.3%.
($1 = 90.2350 Indian rupees)
