Indian Equities Slide as IT Stocks Drag Markets Amid AI Valuation Concerns

ଭ୍ରମଣ

ପର୍ଯ୍ୟଟକ ବଢ଼ିଲେ ମଧ୍ୟ ଆୟ କମିଲା: ଓଡିଶା ପର୍ଯ୍ୟଟନରେ ଅସମତୁଳନ...

March 31, 2026

ଶିକ୍ଷା

CBSEର ବଡ଼ ପରିବର୍ତ୍ତନ: 2026-27 ସେସନ୍‌ରୁ Class 9 ଓ...

April 02, 2026

‘Floccinaucinihilipilification’ କ’ଣ? ଏହି ଦୁର୍ଲଭ ଶବ୍ଦ କାହିଁକି ଟ୍ରେଣ୍ଡ କରୁଛି?

April 02, 2026

ଭାରତର "ଆଇସକ୍ରିମ୍ କ୍ୟାପିଟାଲ୍" କେଉଁ ସହର? ଜାଣନ୍ତୁ ସତ୍ୟ

April 02, 2026

CBSE Curriculum 2026-27 ଆଜି ଜାରି: Class 9-12 ପାଇଁ...

April 02, 2026

Indian Equities Slide as IT Stocks Drag Markets Amid AI Valuation Concerns

Indian markets ended sharply lower on Thursday, led by heavy selling in IT stocks amid global concerns over AI-driven valuations. Weak US tech cues and reduced hopes of a Fed rate cut further dampened investor sentiment.

Published by Somesh | February 12, 2026

Indian benchmark indices closed significantly lower on Thursday, weighed down by intense selling pressure in information technology (IT) stocks. The BSE Sensex declined 559 points to settle at 85,674.92, while the Nifty50 slipped below the key psychological level of 25,900, reflecting growing investor caution.

The IT sector emerged as the biggest drag on the market. Heavyweights including Infosys, TCS, HCLTech, and Wipro witnessed sustained selling throughout the session. The Nifty IT index ranked among the worst-performing sectoral indices, mirroring weakness in global technology stocks, particularly in the United States.

The sell-off comes amid mounting concerns that elevated valuations in AI-driven companies may not justify near-term earnings growth. Investors are increasingly reassessing expectations around artificial intelligence, especially as aggressive AI investments may not immediately translate into visible revenue gains. Additionally, stronger-than-expected US jobs data has lowered the probability of an imminent Federal Reserve rate cut, further pressuring sentiment in growth-oriented technology stocks.

According to market experts, AI-led disruption is not only impacting global markets but also structurally reshaping India’s IT services industry. Automation and accelerated delivery models are challenging the traditional headcount-driven outsourcing model, potentially compressing margins in service-intensive sectors.

Beyond IT, financial and select auto stocks also ended in the red, though losses were relatively moderate. Broader market sentiment remained negative, with midcap and smallcap indices closing lower, indicating widespread risk aversion.

Global cues offered limited support, as overnight losses on Wall Street — particularly in AI-linked stocks — reinforced fears that the AI rally may be entering a recalibration phase. Geopolitical tensions between the US and Iran further contributed to investor caution.

Technically, the 25,900 level on the Nifty will be closely monitored. A sustained break below this mark could trigger additional selling pressure, while any improvement in global tech sentiment may provide short-term relief.

For retail investors, the current phase underscores the importance of discipline and long-term focus, rather than reacting impulsively to short-term volatility.