Mumbai, March 17: On the second trading day of the week, a significant decline was observed in IT Sector stocks as investors expressed growing concerns that generative artificial intelligence (AI) could disrupt traditional revenue models. Consequently, the IT sector emerged as the worst-performing sector in the domestic market.
The Nifty IT index fell by 2.59%, reaching a low of 28,288 during the day. All stocks within the index recorded declines of nearly 7%.
Throughout the day, the Nifty index experienced volatility, with weakness also noted in the PSU bank and FMCG sectors, where declines of about 1% were observed.
As of the time of reporting (around 2:11 PM), all stocks in the Nifty IT index were trading in the red, with several major IT stocks experiencing sharp declines. Persistent Systems saw its shares drop nearly 3% to ₹4,496.70, while Wipro fell by 3.5% to ₹188.25.
Coforge was the biggest loser, plummeting 6.7% to ₹1,008.10. Other major IT stocks also faced declines; Oracle Financial Services Software (OFSS) dropped 2.79% to ₹6,234.50, Infosys fell 2.77% to ₹1,215.10, and TCS decreased by 2% to ₹2,360.
Additionally, HCL Technologies fell 2.32% to ₹1,297.70, LTI Mindtree dropped 2.35% to ₹4,108.10, and Mphasis declined 2.43% to ₹2,030.50. Tech Mahindra also saw a decrease of 1.59%, although it remained slightly stronger compared to other stocks.
Experts suggest that investors are booking profits in the IT sector due to the increasing impact of generative AI. There are concerns that this technology could affect traditional service businesses such as application development, testing, and maintenance, which constitute a significant portion of IT companies’ earnings.
Moreover, Jensen Huang, CEO of Nvidia, recently stated that “the era of physical AI has begun,” suggesting that in the future, every industrial company could become a robotics company, indicating a significant shift in technology trends.
A crucial point from his statement was that Nvidia’s new AI platforms—Blackwell and Vera Rubin systems—could generate demand translating to $1 trillion in revenue by 2027, signaling rapid changes in the sector.