Infosys, Wipro, TCS and other IT stocks rise up to 3% amid US AI rout; is the bubble bursting?
In the wake of a worldwide AI stock decline, companies such as Infosys and TCS have seen their shares rise, demonstrating a contrasting trend. This downturn has sparked fears of impending regulations within the sector, prompting analysts to predict that Indian IT companies might leverage this moment to enhance their entrepreneurial AI ventures, all while experts caution against excessive…
Indian IT companies, including Infosys, Tata Consultancy Services (TCS), Wipro, and others, experienced a surge in share prices by up to 3% on Friday as global AI-related stocks faced significant declines. Wall Street witnessed its worst crash since 2020, with the Nasdaq falling 6%, marking its worst drop since the Covid-19 crash in March 2020.
This AI selloff was primarily driven by fears of increased AI regulation under the newly Democratic-controlled US Congress following the midterm elections, where President Donald Trump's Republican Party lost control. The decline in AI-linked stocks, such as Nvidia and the Philadelphia Semiconductor SE index, wiped out a staggering $3 trillion in stock market value from S&P 500 companies.
Despite the AI bubble fears, Indian IT stocks are seen as having an "anti-AI" advantage, which could benefit them in the long run despite the current market turmoil.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
