Why Nifty IT Stocks Are Falling Today, Feb 24?

The Nifty IT Index has fallen nearly 3%, dragging major tech stocks lower. Companies such as Infosys, HCLTech, and Persistent Systems declined over 3% each.

The index is now trading near its 10-month low as global concerns continue to impact sentiment.

IBM’s 13% Crash on AI Concerns

Shares of IBM dropped 13% in the US, marking one of its sharpest single-day falls in decades.

The selloff followed updates from AI firm Anthropic about its “Claude Code” tool. The tool is expected to modernise legacy COBOL systems faster and at a lower cost.

IBM earns significant revenue from maintaining and updating COBOL systems used in banking, ATMs, airline booking systems, and payment platforms. Investors fear AI tools could reduce demand for such services.

AI Threat to Traditional IT Services

Artificial intelligence is increasingly seen as a disruptive force. Automation and AI-driven tools may reduce the need for traditional outsourcing services.

Indian IT companies such as TCS and Wipro also work extensively on legacy systems. If AI speeds up code modernisation, pricing power and billing rates could come under pressure.

Global Uncertainty and Market Volatility

US-listed ADRs of Indian IT firms fell sharply. Infosys ADR dropped around 5%, and Wipro ADR declined nearly 3%.

Apart from AI fears, global uncertainties such as tariff tensions and concerns in private credit markets are also adding to volatility. Investors are cautious about broader financial risks, which is further pressuring tech stocks.

Read More: NSE Unveils Nanosecond Trading Speeds, Aiming for 100 Million Trades Per Second.

Conclusion

The sharp fall in the Nifty IT index reflects growing concerns over AI-led disruption and global uncertainty. The 13% plunge in IBM has intensified worries that AI tools could reduce demand for legacy system services, a key revenue stream for Indian IT firms like Infosys, TCS, and Wipro.

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