Bears Tighten Grip on India IT as Global AI Angst Deepens
Any hit to IT sector profits could stall the broader earnings recovery.
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Good morning...
I’m Chiranjivi Chakraborty, and I cover equities in Mumbai. Indian markets have lots to digest today.
Local equities look set to start the week on the back foot after a bruising stretch. The Nifty fell nearly 1% last week, dragged down by an 8% plunge in the IT index — its steepest weekly drop in nearly a year — as a global tech selloff and AI disruption fears weighed on sentiment. Friday’s decline pushed the Nifty below its 50-day and 100-day moving averages, keeping the near-term tone cautious. Markets will track WPI inflation and balance-of-trade data due later today for fresh macro cues, while investors assess the central bank’s late-Friday move to tighten rules for proprietary trading firms.