Overview
- The Nifty IT index is down roughly 15% so far in February, on track for its worst month since March 2020, with every constituent trading lower in early deals on February 20.
- Foreign portfolio investors sold Rs 10,956 crore of IT shares in the first half of February, the heaviest fortnightly sector outflow since July 2025, NSDL data show.
- A brief rebound on February 19 followed deal news linked to the India AI Impact Summit, including Infosys’s collaboration with Anthropic and TCS signing OpenAI as a customer, but gains faded the next day.
- Kotak Institutional Equities cautions that cheaper valuations are insufficient for a rerating without visible, sustained growth, flagging near‑term GenAI‑led revenue deflation even as select leaders offer reasonable value.
- Jefferies points to enterprise adoption of customised AI as a structural opportunity, citing Infosys data that about 90% of its top 200 clients use its AI services and estimating a $300–400 billion AI‑led services market by 2030.