Nifty IT index nosedived 2.59 percent, hitting an intraday low of 28,288. No stock escaped the carnage, underscoring investor concerns over AI’s potential to disrupt legacy business models.

The overall Nifty swung wildly, while PSU banks and FMCG indices weakened by about 1 percent. At around 2:11 PM, the IT rout showed no signs of abating.

Coforge led the decliners, shedding 6.7 percent to close at 1,008.10 rupees. Wipro followed with a 3.5 percent drop to 188.25 rupees, and Persistent Systems fell 3 percent to 4,496.70 rupees.

Infosys tumbled 2.77 percent to 1,215.10 rupees, TCS lost 2 percent reaching 2,360 rupees, and Oracle Financial Services Software declined 2.79 percent to 6,234.50 rupees.

HCL Tech slipped 2.32 percent to 1,297.70 rupees, LTI Mindtree dropped 2.35 percent to 4,108.10 rupees, Mphasis fell 2.43 percent to 2,030.50 rupees, and Tech Mahindra eased 1.59 percent.

Analysts point to GenAI’s encroachment on high-margin services such as software development and maintenance, prompting widespread profit-taking.

Adding fuel to the fire, Nvidia’s Jensen Huang declared the era of physical AI underway, envisioning industries transforming into robotics powerhouses. His projection of $1 trillion revenue from Blackwell and Vera Rubin platforms by 2027 amplifies the disruption narrative.

As AI evolves, IT companies face an existential pivot. Investors are recalibrating portfolios, betting on adaptability in this new tech paradigm. The sector’s recovery hinges on clear strategies to harness, not fear, GenAI.