By Admin 
IT Stocks Crash: Amidst the turmoil in the global market and increasing apprehensions regarding Artificial Intelligence (AI), there is tremendous selling in IT sector shares in the domestic stock market. The IT sector, which had been relatively stable for the past several months, has suddenly come to the center of the global decline. In the last eight trading days, the market capital of IT companies has decreased by about Rs 6 lakh crore.
The fear of the impact of AI on this sector of approximately $ 250 billion is so deep that Tata Consultancy Services The market value of (TCS) has slipped below the level of 2020 to less than Rs 10 lakh crore.
Why the big fall in IT stocks?
TCS has fallen nearly 19 percent in the last eight days, while Infosys 21 percent more in HCL Technologies There has been a decline of about 17 percent. On Friday itself, TCS shares fell by about 6 percent, while the Nifty IT index fell by about 5 percent.
This decline is not due to the results or announcements of any one company, but due to widespread global uncertainty and apprehensions about the future of AI. Investors are worried about to what extent the rapidly developing AI technology can change the business model of traditional IT services.
According to market experts, strong employment data from America has weakened expectations of an early cut in interest rates there. Higher interest rates mean that caution increases about investing in growth and technology stocks. A large part of the income of Indian IT companies comes from American clients, hence the economic conditions and interest rates in America have a direct impact on these companies. If American companies reduce their spending on technology, the income of Indian IT companies may be affected, due to which the confidence of investors is wavering.
Why the impact in India?
Meanwhile, American AI startup is behind the fall in IT stocks on Wall Street. Anthropic The new AI tool is also being considered a reason. It is believed that this tool can challenge the traditional model of IT services. This has increased the fear that there may be a reduction in jobs and working hours in the IT sector in future. This is the reason why the increasing uncertainty regarding AI has deeply affected the sentiments of investors and huge pressure is being seen in IT stocks.
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