Sensex tanks over 400 points, Nifty slips below 25,850
The Indian stock market slid sharply on Thursday, with the Sensex losing over 400 points and Nifty slipping below 25,850.
The main reason? Big IT companies took a hit as investors worried about AI shaking up traditional tech jobs and stronger-than-expected US jobs data, which reduced hopes of near-term Fed rate cuts, added to the pressure.
IT stocks take a hit
Major names like Infosys, TCS, Wipro, and HCL Tech saw their shares drop — Infosys about 7.37%, TCS about 6.99%, HCL Tech about 4.58%, and Wipro about 3.79% — wiping out nearly ₹1.9 lakh crore in value.
Investors are getting nervous that AI could cut into regular outsourcing work.
Global investment firm Jefferies even trimmed its exposure to Indian IT stocks—signaling that doubts about the future of old-school IT are spreading.
US job growth and its impact on market sentiment
US job growth was stronger-than-expected and unemployment fell to 4.3%.
That's made investors less hopeful for an early Fed rate cut, which has dampened market sentiment.