Indian software stocks continue to fall, affected by concerns about disruption from AI.

Due to concerns from investors that artificial intelligence may disrupt their business models, they continue to avoid this sector, causing Indian software company stocks to decline on Friday. Due to worries about AI disruption, Indian software service providers and their global counterparts have all experienced significant sell-offs this month. Citigroup analyst Scott T. Chronert wrote in a report on February 12th, "We believe the recent performance of software service stocks reflects the market's concerns about AI disruption leading to a compression in terminal valuation multiples." Despite strong short-term fundamentals, the market is already pricing in lower future profit margins and terminal values. India's two largest software exporters - Tata Consultancy Services and Infosys - led the decline, both initially falling by over 6% before recovering some lost ground. India's Nifty IT index fell by 5.2%, reaching its lowest level since April 7th of last year; the index has already plummeted by 16% this year, erasing all gains made in 2025.