The Nifty IT index has plummeted 25% from its February 3 peak, outpacing the 20% 2008 financial crisis drop, as artificial intelligence fears obliterate traditional outsourcing models, erasing ₹7 lakh crore in market cap amid global tech rout and tariff uncertainties.
AI Annihilation: From Peak to Panic
Since topping 40,000, Nifty IT nosedived to 30,000—deepest correction in 23 years. Heavyweights led carnage:
- Tech Mahindra: -28% YTD
- Coforge: -25%
- HCL Tech/Infosys: -20%+
- TCS/Wipro: -18%
FII outflows hit ₹15,000 crore; rupee depreciation amplifies pain.
Triple Triggers Fuel Freefall
- GenAI Disruption: Tools like Anthropic’s Claude legal AI slash billables 30-40%; clients demand outcome pricing, eroding headcount model.
- US Tariff Tempest: Trump’s 15% duties post-SCOTUS hit $50B exports.
- Global Tech Slump: Nasdaq -5%, Salesforce/ServiceNow -25% YTD mirror fears.
Analyst Verdict: Buy Dip or Structural Doom?
Jefferies: “IT as AI plumbers—Q4 wins key.” Nomura warns revenue pressure; valuations at COVID lows (PE 20x).
Support at 29,500; rebound hinges on earnings, Fed cuts. Defensive pivot for investors.
