FIIs turn big bear on IT stocks, pull out another Rs 11,000 crore in 2 weeks
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Foreign institutional investors (FIIs) are fleeing India's technology sector at an alarming pace, unconvinced that software services giants can survive the AI disruption threatening to hollow out their business models. FIIs pulled out Rs 10,956 crore from Indian IT stocks in just the first fortnight of February, as the release of new models from Claude and Palantir deepened fears that highly autonomous tools could disintermediate the very companies India's stock market has long treated as crown jewels. FIIs had already dumped Rs 74,698 crore worth of IT stocks through 2025, followed by another Rs 1,835 crore in selling last month, as investors are questioning the relevance of the business models of Indian IT services companies. Highly autonomous tools such as Claude Cowork and similar ones from Palantir threaten to disintermediate IT services companies, as a reduction in effort and compression in value could herald a wave of sharp...