IT Shares Drop 25 Percent This Year As Markets Fear AI Impact

The Nifty IT index dropped 25 percent in 2026. This steep fall may have already priced in much of the threat coming from artificial intelligence.

Investment Views

Chintan Haria of ICICI Prudential AMC believes there are selective investment opportunities left in the sector. He points to companies that are positioned to benefit from data engineering, cloud migration, legacy modernisation, and AI integration.

Context

Stock markets often react to major technological shifts well before their full business impact hits company earnings. When an entire sector undergoes a sharp correction, analysts look closely at individual firms to spot those that can adapt to new tech trends rather than just suffering from them.