Indian IT shares had their worst week in more than 10 months on Friday, extending a slide fuelled by fears of artificial intelligence disruption that wiped $50 billion off the sector’s market valuation in February.

As AI forces clients to reallocate spending, J.P. Morgan analysts warned investors that India’s IT firms could miss growth objectives.

IT businesses may not have done enough to communicate how AI might be an opportunity rather than a danger, according to Henderson Far East Income fund manager Sat Duhra.

Friday saw the index fall 5.2% before recovering to 1.44%.
“IT Services companies remain the plumbers in the tech world, and if enterprise software/SaaS is rewritten on a bespoke basis by agents – it will need significant services plumbing to work in enterprise context and minimise AI slop.”