TCS, Infosys, Wipro slide as AI fears drag Nifty IT index over 4%

The Nifty IT index dipped over 4% early on February 12, with most stocks deep in the red, gripped by a fresh wave of anxiety that artificial intelligence could disrupt traditional software and IT services businesses.

The weakness followed fresh advances in enterprise AI tools, which raised concerns that automation could threaten existing software models, offsetting optimism from strong US economic data and spilling over into broader IT stocks.

Ed Yardeni, President of Yardi Research. said “It was kind of like Game of Thrones… and suddenly, with AI, they're [tech companies] all competing with each other.”

He warned that heavy spending on AI infrastructure is adding uncertainty for returns in the software and large-cap technology space.