IT Stocks Drag Markets Lower as AI Disruption Fears Rattle Investors

Mumbai, February 24, 2026: Indian equity benchmarks opened sharply lower on Tuesday, with technology shares leading the decline amid rising global concerns about artificial intelligence reshaping traditional business models.

The 30-share BSE Sensex fell 813.13 points, or 0.97 percent, to 82,481.53 in early trade. The broader NSE Nifty dropped 230.15 points, or 0.89 percent, to 25,482.85.

Technology majors bore the brunt of the sell-off. Shares of Tata Consultancy Services, Infosys, HCL Technologies and Wipro declined between 2.5 percent and 4 percent in early deals. Other heavyweights across sectors also slipped, amplifying the broader market weakness.

Investor anxiety intensified after a weekend report by US-based Citrini Research highlighted sectors globally that could face structural disruption from rapid advances in AI. The report warned that automation tools could significantly affect industries such as credit card services and food delivery platforms, sparking concerns that technology-led transformation may compress margins and reshape demand patterns faster than anticipated.

Adding to the unease, AI firm Anthropic announced that its Claude chatbot can help modernize applications written in COBOL, a legacy programming language widely used on systems developed by IBM. Following the announcement, IBM’s shares tumbled over 13 percent in New York trading, marking their steepest single-day fall in more than two decades and deepening worries about how AI could disrupt established tech service models.

Beyond AI-related fears, rising crude oil prices and renewed trade tensions also dampened sentiment. Fresh tariff remarks by Donald Trump stirred concerns about global trade stability, prompting investors to trim risk exposure across Asian markets.

The decline came a day after a strong close. On Monday, the Sensex had gained nearly 480 points to end above 83,294, while the Nifty added over 140 points to settle at 25,713.

Market participants are expected to closely track global cues, crude oil trends, and further developments in AI-driven business transformation as volatility persists.