6 Lakh Cr Wiped Out in 8 Days: AI Is Crashing Indian IT?

The Indian IT sector is one of the most stable and self-sufficient sectors in the world. But things are starting to change drastically due to the revolution of the artificial intelligence and the subsequent effects on the IT industry.

India’s big IT industry has lost a huge amount of market value in just a few days. Over the past eight trading sessions, the total worth of major Indian IT companies fell by nearly ₹6 lakh crore. Shares of big firms like TCS, Infosys, HCL Tech, and Wipro dropped sharply, pushing the IT index down close to 20 percent and sending some stocks to multi-year lows.

The main reason investors are nervous is the rapid rise of artificial intelligence. Tools that can write code, test software, or automate tasks make people worry that companies might need fewer staff and spend less on traditional services.

This is a big change for an industry built on large teams doing outsourced work for global clients.At the same time, global tech stocks are weak, and strong economic data from the US has reduced hopes of interest rate cuts. This has made investors more cautious about high-valuation IT shares.

Some analysts say the drop reflects real fear about future business models. Others say the selling may be too extreme. They believe Indian IT still has strong demand because companies will need help using AI safely and effectively. The coming months will show if this is a lasting shift or a temporary market reaction.