A gauge of India’s top IT stocks led by Tata Consultancy Services Ltd. and Infosys Ltd. is on track for the worst week since March 2020, tracking a global rout in software stocks triggered by Agentic AI.
The Nifty IT fell as much as 5.24% to 31,422.60 points, with all 10 constituents in the red. That dragged down the benchmark Nifty 50 nearly 1%.
The Nifty IT index was the worst-performing sector on the day and remains the weakest so far this year, after sliding 12.6% in 2025 and a further 16.8% in 2026.
The Nifty IT index is essentially tracking global cues where the NASDAQ and S&P 500 fell as much as 2% on AI jitters.
The rout has deepened since Anthropic PBC released new tools designed to automate work tasks in various industries, sparking fears that the innovations would doom countless businesses.
That’s not to mention the rush from big techs to raise unprecedented amounts of money to build out AI, making the credit market vulnerable — especially with risk premiums already near the tightest levels since the financial crisis.
“This is the most uncertain outlook we’ve seen for AI and the tech-driven rally since this bull market started,” Tom Essaye at The Sevens Report told Bloomberg News. “That does not mean tech won’t recover like it has since then. But I do want to caution against dismissing this weakness as ‘just another bump in the road’.”
