Benchmark indices Sensex and Nifty shed nearly 1% today, dragged by a relentless IT sector sell-off and investor jitters over US President Trump’s tariff threats, erasing gains from recent rallies.
The Nifty IT index plunged over 3% intraday, with heavyweights TCS (down 2.8%), Infosys (3.2%), HCL Tech (4%), and Wipro leading losses—wiping out ₹4.8 lakh crore in market cap this month alone. Broader markets followed, with Nifty below 24,000 and Sensex dropping 600+ points, as 13 of 16 sectors closed red.
Trump’s aggressive tariff rhetoric post-reelection, including Supreme Court blocks on prior hikes, fuels fears of disrupted US tech outsourcing—India’s IT lifeline amid AI disruption worries.
Key Triggers
- AI Disruption: Fears generative AI erodes traditional services; JP Morgan counters IT firms as “AI plumbers” with strong fundamentals, but valuations hit COVID lows.
- FII Outflows: ₹11,000 crore exit from IT stocks since February, sector rotation to banking/infra.
- Global Cues: Tepid US tech spending, fading Fed cut hopes exacerbate the rout.
For India’s $250B IT export engine, this tests resilience—watch Q4 earnings for deal wins. Long-term bulls eye buying dips as cash-rich firms adapt to AI.
