Stock Market: Rs 6 Lakh Crore Wiped Out in 8 Days; IT Stocks Under Pressure

Stock Market: The IT sector in the domestic share market is facing immense pressure. Due to growing concerns about the impact of Artificial Intelligence (AI) and volatility in global markets, there has been a continuous sell-off in IT stocks. 

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₹6 lakh crore wiped out in 8 days

The IT sector's market cap has dropped significantly. Valued at around $250 billion, the sector saw a sudden sell-off. TCS's market value fell below ₹10 lakh crore, raising investor concerns.

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TCS, Infosys, HCL shares fall

In the last eight days, TCS has fallen by about 19%. Infosys shares dropped by up to 21%, while HCL Technologies shares decreased by around 17%. The Nifty IT index also dropped by about 5%.

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Why the AI fear?

This crash isn't due to one company's results. It's driven by fears that AI will disrupt the IT services model. A new tool from AI startup Anthropic fueled anxiety about future IT job losses.

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Impact of US interest rates

Strong US job data suggests interest rates won't be cut soon, pressuring tech stocks. Indian IT firms rely on US clients, so a drop in US tech spending could hit their revenue and lead to job cuts.

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Challenges ahead

IT firms must adapt their business models to the rapid changes in AI to survive. Whether current market fears are temporary will become clear soon. AI and US economics are pressuring Indian IT stocks.