India's IT Stocks Crater 15% in February on AI Panic
The Nifty IT Index is heading for its worst monthly drop since March 2020 as AI fears pummel Indian tech services stocks.
India's benchmark technology index is getting absolutely hammered. The Nifty IT Index has plunged roughly 15% in February, putting it on track for the ugliest month since the COVID crash in March 2020.
The culprit? AI anxiety. Investors are spooked that artificial intelligence could disrupt the massive Indian IT services sector — an industry built on outsourced software development and tech consulting that employs millions.
But not everyone is running for the exits. Some bulls see this as the classic "AI scare trade" — a panic-driven selloff that's creating a buying window for shares in India's tech giants at steep discounts.
Whether this is a genuine structural threat or an overblown freakout remains to be seen. A 15% drawdown in a single month is brutal either way. For now, fear is firmly in the driver's seat.