Global AI Correction Hits Indian Tech Stocks

The Nifty IT index experienced a significant downturn, dropping 1.8% on Monday morning to reach the 28,500 mark. This marked the fourth consecutive session of losses for the index, solidifying its position as one of the market's worst-performing sectors during this period. Reversal of AI Optimism: This steep correction represents a cumulative decline of 8.4% over four days, completely erasing a previous three-session rally where the index had surged nearly 8%. That prior growth was fueled by immense optimism regarding artificial intelligence infrastructure spending and robust global software earnings. Global Tech Profit-Booking: The primary driver behind the domestic selloff is a broader, global retreat from technology shares. International investors have actively moved to secure and lock in gains from major AI-driven winners, triggering a domino effect across global tech markets. Wipro Suffers Heaviest Blow: Among the frontline Indian technology stocks, $WIPRO was the hardest hit during the session. Its shares plunged by 5.5% to trade at Rs 187.4, making it the top loser on the benchmark Nifty 50 index. Broad-Based Losses Across Giants: Other major industry heavyweights also faced notable selling pressure. Market leader $TCS saw its shares slide by 1.9% to Rs 2,156.7, while $INFY fell by 1.3%. $TECHM and $HCLTECH similarly recorded losses of around 1% each. The tech-specific downturn significantly outpaced the general market weakness. While the benchmark Nifty 50 index fell by a modest 1%, the IT sector bore the brunt of the market's risk-off sentiment, driven by the sudden shifts in global tech valuations.