The current decline in Indian IT stocks exists as a direct result of worldwide technology disruptions, which are producing a simultaneous effect on the market. The international market experienced a fresh wave of technology and software stock selling because investors started to worry about how artificial intelligence start-ups would affect established companies.
On Wednesday, Wall Street brought further negative news to the market. The Dow Jones Industrial Average ended its three-day winning streak after the January jobs report showed better-than-expected results but failed to boost market performance. The Indian IT stock market displays signs of deep caution because positive news fails to improve investor confidence.
- Dow Jones fell 66.74 points (0.13%) to 50,121.40
- S&P 500 edged down to 6,941.47
- Nasdaq Composite slipped 0.16% to 23,066.47
Software stocks, which had already fuelled last week’s decline over AI-driven disruption fears, came under renewed pressure.
- Salesforce declined 4%
- ServiceNow dropped 5%
- iShares Expanded Tech-Software Sector ETF (IGV) slid over 2%, nearly 30% below its 52-week high
Cisco Systems also tumbled 7% in extended trading after issuing weak quarterly guidance, according to reports.
AI Jitters Rattle Wall Street’s Financial Heavyweights Spreding Over IT Stocks In India
The financial sector on Wall Street experienced a significant decline as artificial intelligence start-ups created unrest among investors controlling the market. The stock prices of Charles Schwab, Morgan Stanley, and Raymond James fell because investors believed that nimble AI start-ups could threaten traditional banking operations.
The catalyst occurred when Altruist, a financial technology company, introduced Hazel, its automated tax-planning system, which demonstrates how automation technology is transforming the financial advisory field. Investors swiftly adjusted their risk assessments, showing that established companies must not become complacent during the ongoing AI revolution. The future of finance demands rapid and intelligent solutions because artificial intelligence operates without delay.
NIFTY IT and Top Stocks: February 12 Early Trade
The NIFTY IT index was trading 3.59% lower at 33,834.05, with all 12 constituents in the red.
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Coforge was the top loser, down 4.29%
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Infosys, Persistent Systems, and LTIMindtree fell between 4.25% and 3.5%
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TCS hit its 52-week low of ₹2,797.30 on the NSE
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HCL Technologies traded at ₹1,499.20, down 3.38%