AI Worries Weigh on IT Shares; Nifty IT Slumps Over 4%

February 12, 2026February 12, 2026

Shares of IT giants such as Infosys, TCS, and Wipro fell around 4~5% on 12th February. This happened amid a fresh wave of anxiety that artificial intelligence could disrupt traditional software and IT services businesses. Moreover, the Nifty IT index has dipped by over 4.5% today.

IT stocks remained under pressure after a sharp overnight sell-off in US-listed technology shares and IT services ADRs.

The fall came after fresh advances in enterprise AI tools, including Google-owned Anthropic’s new AI plug-ins that can automate tasks across functions. Consequently, this reignited fears that automation could disrupt traditional software business models.

Meanwhile, Anish Shah, Group CEO and Managing Director of Mahindra Group, said concerns around AI’s impact, especially on Tech Mahindra, are “way overblown.”

He noted that the “death of the pyramid” has been predicted several times over the past 30 years — during Y2K, the rise of call centres, blockchain, and other technological shifts. However, the industry has continued to evolve.

Shah added that although people-intensive tasks have reduced over time, AI will improve productivity and also create new types of work. In addition, he said companies that adapt quickly will benefit the most. He also added that the Indian IT services industry is in reasonable shape, with nimble players likely to outperform.

Meanwhile, TCS and Wipro hit fresh 52-week lows. The Nifty IT index has fallen over 11.5% so far this year.

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