IT stocks fell up to 7%, dragging markets lower as fears grow over generative AI disrupting traditional revenue streams. The Nifty IT index declined sharply with broad-based losses across major firms, amid rising uncertainty over future demand and evolving tech trends.

New Delhi, March 17: IT stocks came under selling pressure on Tuesday, emerging as the top dragger among sectoral indices amid rising concerns over the impact of generative artificial intelligence on traditional revenue streams.

Nifty IT index leads sectoral decline

The Nifty IT index declined as much as 2.59 per cent to 28,288, hitting an intra-day low, with all constituents of the index falling by up to around 7 per cent.

Meanwhile, the Nifty traded with high volatility, while weakness was also seen in PSU Bank and FMCG indices, which fell up to 1 per cent.