New Delhi, Feb. 25 -- The Nifty 50 ended more than 1% lower on Tuesday, weighed down by relentless selloff in IT stocks. The Nifty IT index has plunged 24% year-to-date, including a sharp 6.2% fall in just two sessions, erasing Rs.3.04 trillion in investor wealth in a single day. Foreign investors have pulled out $8.7 billion from Indian IT stocks in 2025 so far.

At the heart of the fear? Artificial intelligence. Investors worry that AI-led automation could compress billing rates and disrupt the traditional manpower-driven model. Even though IT firms are investing heavily in AI, experts caution that meaningful revenue benefits may take years to materialise.

Globally, tech stocks are also under strain, while Trump's renewed tariff rhetor...