The Indian IT sector is currently facing a major crisis as concerns over the sustainability of business models among key players like Infosys, TCS, HCLTech, Wipro, and Tech Mahindra are growing. After a decline in revenue expectations, these stocks have seen drastic drops—up to 6%—in just two days. The sell-off has been triggered by apprehensions about interruptions led by AI advancements and continued downturns in American tech stocks, causing strong profit-taking in large-cap and mid-cap companies.

On Friday, the Indian stock market experienced significant declines primarily driven by substantial selling in IT shares. Prominent companies saw declines of as much as 5.58%, indicating a broader issue within the industry as investors react to the potential impacts of evolving technology and market conditions. Analysts are pointing to external market pressures and internal weaknesses that suggest a turbulent phase ahead for the IT sector in India.

Experts, such as equity strategist Kranti Bathini from Wealthmills Securities, have raised alarms about the ongoing turmoil within the Indian IT companies, suggesting that the sector could face even greater challenges if the current trends continue. As the situation develops, investors and stakeholders within the industry are left questioning the future direction of IT stocks, pondering what strategic decisions might mitigate the impending risks.