Indian IT Stocks Lose $50 Billion in Worst Weekly Selloff Since Pandemic

The Indian IT sector faced a massive selloff this week, marking its steepest decline since the onset of the COVID-19 pandemic. Major industry giants, including Infosys, TCS, and HCL Technologies, saw nearly $50 billion wiped off their collective market capitalization. This downturn was primarily fueled by growing investor anxiety regarding the potential for AI to disrupt traditional IT service models. Additionally, fading expectations for imminent interest rate cuts by the US Federal Reserve have weighed heavily on sentiment. The NIFTY IT Index reflected this broader retreat as global macroeconomic concerns continue to pressure tech stocks. Analysts suggest that the structural threat posed by generative AI remains a key long-term concern for the sector's valuation and growth prospects.