Mumbai, March 17 (IANS). On Tuesday, the second trading day of the week, there was a sharp decline in the shares of the IT sector, as there is increasing concern among investors that Generative Artificial Intelligence (AI) could affect the traditional earning methods. Due to this, the IT sector emerged as the most declining sector in the domestic market.
The Nifty IT index fell as much as 2.59 per cent to 28,288, the day’s low. During this period, a decline of about 7 percent was recorded in all the shares of the index.
At the same time, Nifty remained volatile throughout the day, while weakness was also seen in PSU banks and FMCG sector, where it fell by about 1 percent.
Till the time of writing the news (around 2.11 pm), all Nifty IT stocks were trading in loss, and many big IT stocks saw a sharp fall.
Shares of Persistent Systems fell nearly 3 per cent to Rs 4,496.70, while Wipro fell 3.5 per cent to Rs 188.25.
Coforge was the biggest faller, falling 6.7 per cent to Rs 1,008.10.
Other big IT stocks also saw a decline. Oracle Financial Services Software (OFSS) fell 2.79 per cent to Rs 6,234.50, Infosys fell 2.77 per cent to Rs 1,215.10 and TCS fell 2 per cent to Rs 2,360.
Besides, HCL Technologies fell 2.32 per cent to Rs 1,297.70, LTI Mindtree fell 2.35 per cent to Rs 4,108.10 and Mphasis fell 2.43 per cent to Rs 2,030.50. Tech Mahindra also declined by 1.59 percent, although it remained slightly stronger than other stocks.
According to experts, investors are booking profits in the IT sector due to the increasing impact of Generative AI. They are worried that this technology could affect traditional service businesses like application development, testing and maintenance, which form a large part of the income of IT companies.
In addition, Nvidia CEO Jensen Huang recently said that ‘the era of physical AI has begun’ and in the future, every industrial company can become a robotics company, which shows a big change in technology trends.
An important takeaway from his statement was that demand for Nvidia’s new AI platforms – the Blackwell and Vera Rubin systems – could translate into $1 trillion in revenue by 2027, indicating rapid change in the sector.
–IANS
DBP