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flag Indian IT stocks plunged in March 2026 due to AI fears, with major firms falling sharply amid concerns over automation.

flag Indian IT stocks hit 52-week lows in March 2026, with the Nifty IT index falling over 24% year-to-date and nearly 21% from the previous year, driven by fears that generative AI is disrupting traditional services. flag Major firms like Infosys, Wipro, and TCS declined sharply amid concerns that AI tools from companies like Anthropic and Nvidia could automate coding, data processing, and other core tasks. flag Nvidia’s announcement of a potential $1 trillion AI revenue opportunity by 2027 intensified investor worries, leading to widespread sell-offs despite some institutional optimism. flag The sector’s downturn stood out as other Indian markets rose, and foreign investors continued to show confidence with significant equity inflows.

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