IT shares: The AI-led disruption fears proceed to hang-out software program and tech shares within the US market and are additionally spilling over to actual property, monetary companies, and the logistics sector.
The Indian IT shares, mirroring the autumn on Wall Street, have been battered after persistent promoting by the market individuals.
Data present that the Nifty IT index has plunged almost 21% over the previous month (as of Tuesday, February 24 early commerce stage), underscoring the sharp correction in Indian IT shares and the way the sector has fallen out of favour with traders.
Source: Google Finance
How IT shares are faring on Tuesday, February 24
Shares of IT companies firms have been buying and selling with notable losses within the early commerce on Tuesday. The NIFTY IT index was buying and selling 3.14% decrease at 30,559.15 ranges, with all 10 constituents buying and selling within the purple. The largest loser was Coforge (down 4%). Next on the losers’ listing have been Persistent Systems (down 3.75%), HCLTech (down 3.6%), and Mphasis (down 3.5%).
US shares on Monday, Feb 23
US equities tumbled within the in a single day commerce on Monday, February 23, as traders grappled with persistent fears round synthetic intelligence disruptions to numerous industries. Besides, President Donald Trump’s resolution to boost his international tariffs additionally weighed on the sentiment.
The Dow Jones Industrial Average dropped 821.91 factors, or 1.66%, to shut at 48,804.06, whereas the Nasdaq Composite declined 1.13% and ended at 22,627.27. The S&P 500 shed 1.04% and closed at 6,837.75, placing it into the purple as soon as once more for 2026.
The 30-stock Dow was dragged down by IBM shares, which declined 13%.
IBM shares plunged after Anthropic unveiled new programming capabilities for its Claude Code product. Other software program majors, together with Microsoft and CrowdStrike, additionally remained beneath stress amid lingering issues over AI-driven disruption. Microsoft fell 3%, whereas CrowdStrike tumbled almost 10%.
A CNBC report stated that software program hasn’t been the one sector to be hit as a result of AI fears not too long ago: shares linked to trucking and logistics, industrial actual property, and monetary companies have equally suffered losses this month.
What analysts say on Indian IT sector
In its current word, Jefferies stated that AI could structurally change the IT enterprise combine in the direction of consulting/implementation whereas shrinking managed companies. This wouldn’t solely improve cyclicality but in addition require a change in expertise/working mannequin – thus including dangers.
The international monetary companies large stated that regardless of their 16% fall YTD, shares nonetheless provide greater draw back than upside.
Takeaways from AI Summit 2026
In the not too long ago concluded India AI Impact Summit 2026, trade leaders deliberated on the impression of synthetic intelligence on SaaS and enterprise companies and the way the know-how may reshape the character of the IT trade.
The panellists indicated a collective message: AI brokers will reshape enterprise and working fashions, however they won’t render them out of date in a single day.
They emphasised that success within the AI period will hinge on agility, enterprise readiness, orchestration, and above all, the flexibility to repeatedly remedy actual buyer issues in more and more complicated digital ecosystems, in line with an official launch.
Addressing issues over sharp market reactions to AI instruments, together with hypothesis round the way forward for SaaS, Arundhati Bhattacharya, Chairperson & CEO of Salesforce India, cautioned in opposition to oversimplification.
Software-as-a-Service (SaaS) is a cloud-based mannequin by which functions are delivered over the web for a subscription, relatively than put in and maintained on legacy computer systems or servers at shopper premises. “Markets will say a lot of things, and not all of it comes true,” she famous.
“When you talk about the SaaS model, it’s not only about vibe coding or creating an application; it’s about understanding workflows, recognising customer pain points, and ensuring you address them. It’s about observability, governance, auditability, and adoption,” she stated.
What the TCS CEO stated
From a companies perspective, Ok Krithivasan, Chief Executive Officer of Tata Consultancy Services, India’s largest IT companies firm, emphasised a basic shift within the function of engineers.
“We are entering an era where the role of the software engineer is shifting toward high-level architecture and rigorous validation,” he stated. While AI guarantees immense productiveness beneficial properties, enterprise adoption requires important groundwork, from information rationalisation to utility modernisation, he pressured.
Instead of contraction, he stated he foresees enlargement of the market and its many alternatives. “We don’t envision a shrinking of the sector, but rather a massive explosion in the volume of what can be produced and the complexity of the problems we can solve.”
Enterprise AI adoption calls for greater than generic fashions, stated HCLTech CEO
C Vijayakumar, Chief Executive Officer and Managing Director of HCL Technologies, asserted that enterprise AI adoption calls for greater than generic fashions.
“Large language models and foundational models cannot yet be applied most efficiently to enterprise use cases,” he stated, noting a persistent hole between foundational capabilities and enterprise-grade efficiency.
HCL Technologies is constructing mental property and specialised companies, together with bodily AI and agentic AI, to bridge that hole and scale adoption, even when which means proactively evolving present enterprise traces.
Infosys sees alternative forward
Infosys Chief Executive Officer Salil Parekh underscored the dimensions of alternative forward.
“AI is creating a $300 billion services opportunity by making the ‘impossible’ economically viable.”
The panel dialogue got here in opposition to the backdrop of the market’s rising unease over SaaS corporations’ mannequin as AI brokers threaten to automate core workflows, minimize dependence on conventional software program subscriptions, and pressurise margins.
The shift towards outcome-based AI options has raised issues about pricing stress and disruption from AI-native opponents and instruments.
With inputs from PTI
