Nifty IT index gains 2% after last week's $50bn wipeout
After a tough week that saw IT stocks tumble, the Nifty IT index jumped 1.92% on Tuesday, led by Infosys, TCS, and HCLTech.
Last week's steep 8.2% drop—triggered by fears over new AI tools like Anthropic's and weak global tech results—had wiped out about $50 billion in value.
AI fears hit IT stocks hard last week
IT stocks hit their lowest point in 10 months thanks to worries about AI competition, but this rebound could mean fresh opportunities for investors.
Big names like Infosys and Wipro now look more affordable than they've been in recent months.
Infosys partners with AI firm Anthropic, boosting investor sentiment
Infosys helped restore confidence by announcing a partnership with Anthropic, pushing its stock up over 3%.
Mid-cap IT firms like Coforge and Persistent Systems also saw gains.
Analysts say the sector could see a turnaround over the medium term as AI creates new demand for tech services.