Mutual Funds’ Top 10 IT Bets Shrink by Over ₹50,000 Crore in Notional Value as AI Disruption Fears Deepen

Mutual funds have recorded a sharp reduction in exposure to the top ten Indian IT stocks since early February, driven by market worries that generative artificial intelligence could curb demand for traditional coding and support services. 

Impact on Mutual Fund Holdings in the IT Sector 

As per ACE Equities report, combined investment in the ten leading IT companies fell to ₹3.04 lakh crore on February 13, down from ₹3.56 lakh crore at the end of January 2026. The decline represents a notional loss exceeding ₹50,000 crore.  

The Nifty IT index slipped 14% during the same period, with Infosys down 16.5%, TCS down 14%, and HCL Technologies down 14.2%. 

Breakdown of Losses by Major IT Companies 

Infosys holdings dropped from ₹1.37 lakh crore to ₹1.14 lakh crore, a loss of roughly ₹22,600 crore. TCS holdings fell from ₹62,270 crore to ₹53,660 crore, a loss of about ₹8,600 crore.  

HCL Technologies saw holdings decline from ₹40,885 crore to ₹35,080 crore, a loss of around ₹5,800 crore. Other firms such as Tech Mahindra, Persistent Systems, Coforge, Mphasis and Wipro contributed additional notional losses ranging from ₹1,231 crore to ₹3,900 crore. 

Read More: January Portfolio Shuffle: Mutual Funds Rotate from IT and FMCG to Financials! 

Concentration of Holdings Among Top Mutual Funds 

SBI Mutual Fund holds approximately ₹62,000 crore in the top 5 IT stocks, followed by ICICI Prudential Mutual Fund with about ₹55,000 crore and HDFC Mutual Fund with roughly ₹41,600 crore.  

Other notable holders include UTI Mutual Fund (₹29,750 crore), Nippon India Mutual Fund (₹28,350 crore), Kotak Mahindra Mutual Fund (₹23,870 crore), Mirae Asset Mutual Fund (₹14,500 crore) and Motilal Oswal Mutual Fund (₹12,370 crore). 

Conclusion 

The recent sell‑off in Indian IT equities has led mutual funds to incur a notional loss of over ₹50,000 crore, reflecting reduced exposure across several major technology firms and a concentrated holding pattern among the largest fund houses. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme‑related documents carefully.