Infosys, Wipro ADRs Slump Over 8% As Bears Tighten Grip On Indian IT Stocks Amid AI Fears

Shares of Indian IT giants Infosys and Wipro faced significant declines on the American stock market, with Infosys American Depositary Receipts (ADRs) plummeting by 8.22% to $14.46, nearing the day's lowest point. Wipro's ADRs also experienced a drop, falling by 4.60% to $2.28 on the New York Stock Exchange. This downturn comes amid growing concerns about the impact of artificial intelligence (AI) on traditional IT business models, sparking fears among investors about the long-term viability of established players in the sector. The slump reflects a broader trend in the Indian IT industry, which is grappling with challenges such as increased competition and the need to adapt to rapidly evolving technological landscapes. Analysts suggest that the bearish sentiment is likely to persist as market participants reassess the potential risks and rewards associated with these stocks. The decline in IT shares is a crucial development for Indian investors, as these companies have been key drivers of the country's economic growth. The ongoing uncertainty surrounding AI's role in the industry adds to the volatility, prompting stakeholders to closely monitor future market movements and corporate strategies.