Indian tech’s Nifty share shrinks to record low on AI worries

The combined weight of five IT companies in the Nifty 50 has fallen below 7.6 percent, the lowest since 2002, down from over a fifth at their peak more than two decades ago. The Nifty IT Index has slumped 29 percent this year compared with a 9 percent decline in the broader Nifty, as investors worry that generative AI could undermine the traditional outsourcing model. Infosys has slipped to the eighth-largest stock in the Nifty 50 by weight from third place five years ago, while TCS now ranks 13th.