FIIs dump Rs 17,000 crore worth of IT stocks in February. Will AI eat software?
[hfe_template id='11223']
[ad_1]
Foreign institutional investors (FIIs) are staging a dramatic exodus from Indian software stocks, offloading nearly Rs 17,000 crore worth of IT shares in February alone, as fears mount that artificial intelligence could render traditional software services obsolete. The selling accelerated in the month's second half, with FIIs dumping Rs 5,993 crore of IT stocks between February 15-28, following a Rs 11,000 crore selloff in the first fortnight, according to NSDL data. The rout has pushed the Nifty IT index down 20% so far in 2022, making it one of the year's worst-performing sectors. The carnage comes as global brokerages slash earnings estimates and price targets, warning that AI could fundamentally reshape the industry's business model and trigger further deratings of up to 65%. Also read: Jio IPO timeline nears as $4 billion listing looms. How it may impact Reliance shareholders Jefferies has painted a grim picture of the s...