AI Disruption Fears: Nifty IT Index Plunges 8% in One Week as Investors Reweigh Risks

The Indian IT sector, once the darling of investors, is undergoing a period of intense scrutiny. The Nifty IT index has corrected sharply as major global brokerages downgraded several top-tier firms, citing potential revenue leakage due to AI-driven automation. Companies like Infosys and TCS have highlighted that while AI presents opportunities, the transitional phase might involve significantly reduced billing cycles for routine maintenance and coding tasks. This "Software Crisis" has led to a significant re-rating of P/E multiples across the sector.