Top 10 IT stocks lose ₹50,000cr in mutual fund holdings
Worried about generative AI shaking up the IT industry, mutual funds pulled back, resulting in a notional ₹50,000 crore loss in their combined holdings in India's top 10 IT stocks between late January and February 13, 2026.
Mutual funds' combined holdings slid from ₹3.56 lakh crore to ₹3.04 lakh crore in just a few weeks.
Major mutual funds have reduced their stakes
If you or your family invest in mutual funds, this hits close to home—big names like SBI Mutual Fund, ICICI Prudential, and HDFC Mutual Fund hold sizeable investments in the top IT stocks, as the Nifty IT index fell in February.
Mutual fund holdings in Infosys fell, with holdings in TCS and HCL also down.
Generative AI's potential to disrupt traditional IT services
The selloff gathered pace after Anthropic released a suite of open-source Cowork plug-ins, sparking fresh worries that generative AI could disrupt traditional IT services—and shift where companies spend their tech budgets.
Analysts warn this could mean slower growth for top firms like TCS and Tech Mahindra for at least the next year or two.