LIC and Mutual Funds Lose Over One Lakh Crore as IT Stocks Crash Amid Rising Artificial Intelligence Disruption Fears
The Indian stock market is currently witnessing a massive wipeout in the technology sector. In February alone, the Nifty IT index dropped by 21 percent. This is the worst monthly fall the sector has seen in nearly twenty-three years. Investors are very worried about how artificial intelligence will change the industry. They fear that AI will make traditional software jobs vanish. This panic has caused a huge selloff across all major tech companies. Big institutional players are feeling the heat the most.
Data shows that the Life Insurance Corporation of India and various mutual funds have lost more than one lakh crore rupees. Specifically, LIC saw its wealth shrink by about 38,000 crore. Mutual funds suffered an even bigger blow with a loss of 63,000 crore. Infosys was the biggest loser in this group. The company alone wiped out 26,000 crore from mutual fund portfolios. TCS and Wipro also saw their share prices tumble significantly as the month progressed. The total wealth lost by Nifty IT firms is around five lakh crore.
The main fear is that AI tools will finish projects faster and cheaper. This would hurt the profit margins of Indian firms that rely on large numbers of employees. Some experts believe the market reaction is too much. They say AI will help companies evolve rather than kill them. But right now, the numbers look very grim for stockholders. You can see more details as the market tries to find its footing. The US and Europe markets are also slow which adds to the trouble. Many analysts are telling people to be careful with tech stocks for now. The future of the $300-billion industry depends on how well it can adapt to these new tools. For now, the red screen on the stock exchange is telling a very scary story for investors. It is a tough time for the Indian tech story.
