IT stocks lead Indian market slide on AI-disruption fears

MUMBAI: Indian shares fell sharply on Friday, dragging benchmarks to weekly losses as anxiety around AI automation and fading hopes of an imminent US rate cut deepened the ongoing sell-off in information technology stocks.

IT, the second-heaviest weighted index among 16, fell 8.2 percent this week, their worst showing in 10 months.

The slump pulled benchmark Nifty 50 down 0.9 percent and the BSE Sensex down 1.1 percent for the week, eroding gains from the interim India-US trade deal.

“The ongoing IT rout implies the market is pricing the risks of uncertainty over whether Indian software firms will be able to retain productivity gains and protect their revenues,” said Hiren Dasani, chief investment officer for emerging markets at Whiteoak Capital.