News Summary

• The IT index was down 5.8 per cent at 29,310.25 points.
• If losses hold, this would be its worst day since February 4.
• Tata Consultancy Services, India's largest software exporter, slumped 9 per cent to lead the losses.
• India's $300 billion IT sector has been under pressure for much of this year as investors assess whether AI will generate new revenue streams for software exporters or reduce demand for traditional outsourcing services.
• "We expect new opportunities such as legacy modernization to increase, but do not expect them to compensate for the deflation enough," said Kotak Institutional Equities analysts led by Kawaljeet Saluja.