Infosys, LTIMindtree Lead IT Stock Fall as Nifty IT Drops 2% on US Weakness and AI Fears

The Nifty IT Index dropped around 2% in early trade, showing widespread selling in technology shares. Every stock in the index traded lower, indicating weak investor sentiment across both large-cap and mid-tier IT companies.

Among the biggest losers were Persistent Systems, Infosys, Coforge, and LTIMindtree, which fell the most in early deals. 

Other major names such as Tata Consultancy Services, HCL Technologies, Wipro, Tech Mahindra, Mphasis, and Oracle Financial Services Software also declined.

Weak Signals from the US Technology Sector

Negative cues from global markets added pressure. Technology stocks in the US fell amid worries about Artificial Intelligence disruption and fading hopes of an early interest-rate cut by the United States Federal Reserve.

Companies like EPAM Systems, Globant, Cognizant, and Accenture declined, and this weakness often affects Indian IT stocks because they earn a large share of revenue from the US market.

Rising Concerns About AI Disruption

Fresh worries about Artificial Intelligence are also hurting sentiment. New AI tools, such as Claude Cowork, launched by Anthropic, can automate routine workplace tasks. This has raised fears that companies may reduce spending on traditional IT services and outsourcing in the future.

Broader Fear Around AI Impact

Beyond immediate market triggers, investors are increasingly concerned that Artificial Intelligence could disrupt multiple industries, not just IT services.
This psychological uncertainty is adding to selling pressure in technology stocks.

Conclusion

IT stocks are under pressure due to weak global cues, AI-related disruption fears, and cautious investor sentiment. 

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