Nifty IT hits 52-week low as OpenAI fears hammer tech stocks
The Nifty IT index declined 2.25% to 27,289.20. The index has fallen 7.16% in four consecutive sessions and hit a 52-week low of 27,078 during the day.
Persistent Systems tumbled 4.69%, leading the losses. LTIMindtree fell 2.90%, while Tech Mahindra slipped 2.81%. Infosys declined 2.52%. Coforge and HCL Technologies dropped 2.28% and 2.26%, respectively.
Mphasis lost 1.84%, while Tata Consultancy Services and Oracle Financial Services Software declined 1.49% and 1.47%, respectively. Wipro bucked the trend and rose 0.18%.
Investor sentiment weakened after OpenAI announced the launch of the OpenAI Deployment Company, a new enterprise-focused AI business backed by more than $4 billion in initial investment.
The move raised concerns over disruption in the traditional IT services industry. The new venture targets large-scale AI deployment, workflow redesign and enterprise transformation services.
According to OpenAI, the Deployment Company will embed ?Forward Deployed Engineers? within client organisations to identify AI opportunities and deploy AI systems at scale.
OpenAI also said the business will help enterprises integrate AI into core operations and workflows. The company has agreed to acquire AI consulting firm Tomoro, which will bring around 150 deployment engineers into the venture.
The initiative is backed by 19 investment firms, consultancies and system integrators, including Bain & Company, Capgemini and McKinsey & Company.
Market participants viewed the development as a potential long-term threat to high-margin consulting and digital transformation businesses offered by traditional IT services firms.
Powered by Capital Market - Live News
