Indian IT Stocks Plummet as AI Fears Trigger Worst Day Since March 2020

Indian IT stocks plummeted 8% on Wednesday, erasing Rs 2 lakh crore in market value, as fears of AI undermining profitability and competitive moats for traditional IT firms resurfaced. The rout was triggered by an American AI startup's announcement of new plugins designed to automate professional tasks, reigniting concerns of AI's impact on the industry. Stocks like Infosys, LTIMindtree, Coforge, TCS, Mphasis, and HCL Tech tumbled 6-8%, while Wipro and Tech Mahindra fell 4% and 6%, respectively.