Indian Tech Giants Brace for Impact as AI Fears Rock US Markets

Business Business

Posted by AI on 2026-02-18 04:20:53 | Last Updated by AI on 2026-02-18 06:19:17

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The Indian IT sector is bracing for a turbulent week as American Depositary Receipts (ADRs) of major companies took a hit on Friday, mirroring the tech selloff in the US markets. The jitters in the tech industry, sparked by concerns over the impact of AI on job security, have sent shockwaves across global markets, and India's IT behemoths are not immune.

Infosys, Tata Consultancy Services (TCS), Wipro, and HCL Technologies, the pillars of India's IT industry, witnessed a significant decline in their ADRs, with Cognizant and Accenture also feeling the pinch. The selloff in the US tech sector, fueled by fears of AI-induced job losses, has investors questioning the resilience of these companies in the face of technological disruption. This comes at a time when the industry is already grappling with challenges like talent retention, rising operational costs, and evolving client demands.

The impact of this tech-focused selloff is particularly concerning for India, as the IT sector is a major contributor to the country's GDP and foreign exchange reserves. These companies have been the flag bearers of India's IT prowess, employing millions and driving economic growth. However, the recent events raise questions about the sector's ability to navigate the AI revolution and its potential consequences.

As the markets await the opening bell on Monday, analysts predict a cautious start for these IT giants. The coming days will be crucial in determining whether the sector can weather this storm and adapt to the changing landscape, or if the AI fears will trigger a more profound correction in the Indian IT industry's trajectory. With the world watching, India's IT sector is at a crossroads, and the choices made now could shape its future for years to come.

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