FIIs dump Rs 17,000 crore in IT stocks in February amid AI concerns
FIIs dump Rs 17,000 crore in IT stocks in February amid AI concerns
FIIs’ combined investment in IT stocks declined to about Rs 4.18 lakh crore at the end of February, the lowest level in four years. This represents a 21.8 percent drop from Rs 5.34 lakh crore at the end of January 2026, according to NSDL data.
Foreign investors sold nearly Rs 6,000 crore worth of IT stocks in the second half of February after offloading around Rs 11,000 crore in the first half of the month, as concerns over the impact of generative artificial intelligence triggered a sharp selloff in the sector.
The heavy selling came amid fears that rapid advances in generative AI could reduce demand for large-scale, human-led coding and IT support services, which remain a key revenue driver for India’s software exporters.
Combined selling by FIIs in IT stocks during February stood at nearly Rs 17,000 crore. Despite the sector-specific selling, FIIs remained net buyers in Indian equities overall, purchasing around Rs 15,250 crore during the month.
Stock to keep on radar