Indian equity markets ended sharply lower on Thursday, with the benchmark BSE Sensex dropping 559 points to close at 83,675, primarily dragged down by steep losses in information technology (IT) stocks.
The decline was led by sector heavyweights Infosys and TCS, which together accounted for nearly 400 points of the index’s fall. The sell-off came amid rising concerns about the long-term sustainability of traditional IT services business models in the era of artificial intelligence.
Market participants believe AI-driven automation is triggering a structural shift in the IT sector by reducing project timelines and lowering reliance on large workforces — a key component of India’s outsourcing model.
On the day, Infosys shares dropped 5.8%, TCS fell 5.4%, and Tech Mahindra declined about 6%, pushing the BSE IT index down 5.3%. Over the past month, the IT index has lost more than 12%.
The sharp fall in TCS also pulled its market capitalisation below the ₹10-lakh-crore mark for the first time since November 2020.
Overall investor wealth took a significant hit, with BSE’s total market capitalisation declining by approximately ₹2.5 lakh crore, settling at ₹474.5 lakh crore.
