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IT Rout Deepens on Dalal Street, Pulling Sensex Below 83,000 and Nifty Under 25,600

A sudden reassessment of AI’s impact on India’s outsourcing model is driving the exodus.

Overview

  • Early trade on Friday saw the Sensex skid 700–880 points to near 82,800 as the Nifty slipped below 25,600, extending a tech-led slide from the previous session.
  • Nifty IT dropped roughly 4–6% to multi-month lows, with Infosys and TCS falling up to about 6% alongside declines in HCLTech, Wipro, Tech Mahindra, LTIMindtree, Coforge and Persistent.
  • Analysts tied the sell-off to concerns over rapid AI adoption — including the so-called Anthropic shock — that could pressure headcount-based outsourcing and margins at Indian IT firms.
  • Stronger US jobs data has reduced expectations for near-term Federal Reserve rate cuts, compressing growth valuations and reinforcing the global tech risk-off that spilled into Indian markets.
  • Thursday’s downturn saw the IT index slide about 5% with an estimated ₹1.3 lakh crore in sector market-cap erased, and traders on Friday flagged key Nifty supports near 25,650–25,550 as volatility stays elevated.