TCS, Infy, HCL, Wipro, Coforge stocks crashes 5% as AI concerns lead IT sell-off

Market Overview - Indian equity markets opened sharply lower, with the Sensex falling 790.71 points to 82,884.21 and Nifty declining 254.95 points to 25,552.25, influenced by a global tech sell-off due to concerns over AI disruption to traditional business models [1][5] IT Sector Performance - The Nifty IT index experienced a significant decline of 4.72 percent, dropping to 31,594.70, marking its sharpest single-day decline in ten months [2] - Major IT companies faced substantial losses, with Infosys down 6.11 percent to ₹1,301.30, TCS down 4.59 percent to ₹2,624.00, HCL Technologies down 4.38 percent to ₹1,411.50, and Wipro down 3.55 percent to ₹211.31 [2][6] - The sell-off in IT stocks was attributed to a sharp decline in US technology stocks, with the Nasdaq falling 2.03 percent as investors reassessed the impact of AI startups on established tech companies [2] Broader Market Trends - The broader market showed mixed signals, with select financial stocks like Bajaj Finance and SBI Life Insurance witnessing buying interest, while Hindalco faced significant selling pressure, declining 5.78 percent to ₹908.70 [7][8] - Foreign Institutional Investors continued to buy equities worth ₹108 crore, while Domestic Institutional Investors invested over ₹276 crore, providing some support to the markets [9] Investor Sentiment - Concerns over AI-led disruption and fading optimism regarding near-term global rate cuts are expected to weigh on market sentiment [5] - Experts advised caution, suggesting that panic selling in IT stocks may not be prudent and that investors should consider accumulating high-quality growth stocks, especially those with strong Q3 results [8]