Nifty IT falls 32% from peak, worst since 2008 crisis
What's the story
The Nifty IT index, a key barometer for India's technology sector, has witnessed its biggest fall since the 2008 financial crisis. The index has plummeted by a staggering 32% from its record high in December 2025. The decline comes amid fears of artificial intelligence (AI) disrupting traditional business models of Indian software services firms and affecting their future earnings growth. Shares of IT stocks slid again on Monday, marking the fourth straight session of losses for the sector.
Market response
IT sector on downward trend in 2026
The Nifty IT index slipped 1.1% in intraday trade today. Over the past four sessions, the index has declined 9.5%. The entire sector has been on a downward trend this year, losing nearly 15% so far. All major IT stocks are trading below key averages, indicating that the market is still not optimistic about a recovery in the near future.
AI impact
AI's impact on traditional business models raises investor concerns
The rise of AI is disrupting traditional IT jobs and business models, causing investors to worry about future profits. This has led to a sell-off in shares of Indian tech giants like Tata Consultancy Services (TCS) and Infosys. With market signals still negative and no clear recovery in sight, it's a tough time for India's big tech players.