Overview
- The Nifty IT index slid 8.2% for the week, its steepest fall since April 2025, after crashing over 5% intraday on Friday before finishing 1.44% lower.
- The Sensex fell 1,048 points to 82,626.76 and the Nifty 50 dropped 336 points to 25,471.10 on Friday, with India VIX jumping more than 13% to 13.29.
- Since Anthropic’s February 4 launch of new AI tools, Nifty IT has declined about 15% and sector market value has shrunk by roughly Rs 5.08 lakh crore, with several blue chips marking 52-week lows.
- Foreign portfolio investors sold about Rs 7,395 crore on Friday as domestic institutions bought roughly Rs 5,554 crore, alongside global pressure from strong US jobs data that tempered Fed cut hopes.
- Broker notes from JP Morgan and Jefferies warn of AI-driven efficiency pressures but say enterprise work will still need services ‘plumbing’, with investors watching upcoming Fed and RBI minutes and US GDP data.