Tech Sector including

INFY

Under Pressure — FII Exodus Signals Caution

₹50,000 crores of FII outflows from IT stocks like

tells you everything about global sentiment right now. The big questions hanging over the sector - will AI kill traditional IT services, are layoffs permanent, when will earnings recover - aren't getting answered fast enough for impatient foreign money. The bear case is real: clients are cutting costs, automation is eating into routine work, and even tech giants are struggling with demand. Plus, AI tools might genuinely reduce the need for large offshore development teams, which has been India's bread and butter for decades. But here's the contrarian view: Indian IT companies aren't sitting still. They're investing heavily in AI capabilities, moving up the value chain, and their clients still need digital transformation. The valuations are getting genuinely attractive after this selloff, especially for companies with strong execution track records. The problem is timing. FIIs might be early, but they're rarely completely wrong about sector rotations. This could be a long, grinding recovery rather than a quick bounce back. Bargain hunters betting on a sector turnaround need patience and strong stomachs.