Nifty IT index falls amid global tech and AI selloff
The Nifty IT index fell 1.8% to 28,500 on Monday, marking its fourth day in a row of losses and an overall drop of 8.4%.
This comes after a big global selloff in tech and AI-related stocks, pushing Indian investors to cash out.
Just last week, the index had jumped nearly 8% thanks to excitement over AI investments and strong software earnings.
Wipro drops 5.5% amid Nasdaq fall
Wipro took the biggest hit among Indian IT giants, dropping 5.5% to ₹187.4.
TCS and Infosys also slipped by about 2% and 1%, while HCL Technologies and Tech Mahindra were down around 1%.
The trend matched what we saw globally, Wall Street's Nasdaq had its steepest fall since April last year, dropping more than 4%.
Broadcom outlook, US jobs spark selloff
It wasn't just India feeling the pain: the Philadelphia Semiconductor Index posted its largest drop since March 2020, and markets like South Korea's Kospi and Japan's Nikkei slid up to 5%.
The selloff was sparked by Broadcom's weak AI outlook and strong US jobs data, which raised worries that US interest rates might stay high for longer, making investors nervous about fast-growing tech stocks everywhere.