New Delhi, March 17 (IANS) IT stocks came under selling pressure on Tuesday, emerging as the top dragger among sectoral indices amid rising concerns over the impact of generative artificial intelligence on traditional revenue streams.

The Nifty IT index declined as much as 2.59 per cent to 28,288, hitting an intra-day low, with all constituents of the index falling by up to around 7 per cent.

Meanwhile, the Nifty traded with high volatility, while weakness was also seen in PSU Bank and FMCG indices, which fell up to 1 per cent.

By 12:40 pm, at intra-day lows, all Nifty IT constituents extended losses, with several frontline names witnessing sharp declines on the NSE.

Persistent Systems fell around 3 per cent to Rs 4,496.70, while Wipro dropped 3.5 per cent to Rs 188.25.

Coforge emerged as the top loser, plunging 6.7 per cent to Rs 1,008.10.

Other major IT stocks also traded lower, with Oracle Financial Services Software (OFSS) declining 2.79 per cent to Rs 6,234.50, Infosys falling 2.77 per cent to Rs 1,215.10, and TCS slipping 2 per cent to Rs 2,360.

HCLTech dropped 2.32 per cent to Rs 1,297.70, while LTIMindtree and Mphasis fell 2.35 per cent and 2.43 per cent to Rs 4,108.10 and Rs 2,030.50, respectively. Tech Mahindra was relatively resilient but still declined 1.59 per cent to Rs 1,318.20.

The sector is witnessing profit booking amid growing concerns that generative AI could disrupt core service lines such as application development, testing and maintenance, which account for a significant portion of IT companies’ revenues.

In addition, Jensen Huang, CEO of Nvidia, recently said that “physical AI has arrived” and that every industrial company will become a robotics company, signalling a shift in technology trends.

One of the major highlights from the Nvidia CEO’s speech was his projection that cumulative demand for Nvidia’s next-generation AI platforms, including Blackwell and Vera Rubin systems, could translate into $1 trillion in revenue by 2027.

–IANS

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