India’s IT shares fell to a three-year low on Tuesday as investor jitters around the threat posed by artificial intelligence to flagship IT firms flared up again, after OpenAI announced a new AI venture.
The Nifty IT index fell 3.6 per cent to its lowest since May 2023, with Tata Consultancy Services, Infosys , HCL Technologies and Wipro falling between 2.5 per cent and 4 per cent.
Analysts at HSBC said in a Tuesday note that India’s top-tier IT firms largely failed to meet street expectations for earnings in March quarter as well as in their outlooks for the new financial year, adding that strong spending globally on AI could be “crowding out” demand for traditional IT services.
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