New Delhi, March 6 -- Foreign Portfolio Investors (FPIs) sold Indian Information Technology (IT) stocks worth nearly Rs.17,000 crore in February amid rising concerns about potential disruption from artificial intelligence (AI) in the sector. The Nifty IT index declined nearly 20% during the month.

The sharp sell-off in IT stocks came even as overall foreign portfolio investment flows into the Indian stock market remained positive. FPIs were net buyers of Indian equities worth Rs.22,615 crore in February, according to data from the National Securities Depository Limited (NSDL).

The IT sector witnessed the highest selling pressure, with FPI outflows amounting to Rs.16,949 crore during the month. A significant portion of the selling occurr...