Indian Stock Market Opens Weak Amid AI Disruption Concerns in IT Sector

The Indian stock market opened on a downtrend this week as both benchmark indices, Nifty 50 and BSE Sensex, reported losses. AI-driven disruptions in the IT sector continue to make investors cautious. Sectoral indices, gold, and silver prices also witnessed declines, adding to the fragile market sentiment.

The domestic stock markets displayed a weak start this Monday, with benchmark indices opening in the red amid ongoing concerns about disruptions caused by artificial intelligence (AI) in the IT sector. The Nifty 50 index started at 25,423.60, marking a decline of 47.50 points or 0.19 percent. Meanwhile, the BSE Sensex opened at 82,480.40, down by 146.36 points or 0.18 percent, reflecting cautious investor sentiment at the week's outset.

Market experts highlighted that the continued apprehension regarding AI-driven disruptions is impacting IT companies, which play a significant role in the Indian stock market. Ponmudi R, CEO of Enrich Money, commented on the prevailing concerns, stating, "Persistent concerns around AI-driven disruption continue to act as a key overhang for IT heavyweights, reversing part of the optimism earlier sparked by the US-India interim trade framework and reinforcing a broader risk-off undertone. Stabilisation within the IT sector will be crucial for rebuilding broader market confidence."

Experts also noted mixed foreign institutional investor (FII) participation alongside steady domestic institutional investor (DII) inflows. While the broader market indices like the Nifty 100 and Nifty Midcap 100 fell by 0.22 percent and 0.46 percent respectively, the Nifty Smallcap 100 dropped by 0.62 percent, indicating widespread weakness. Among sectoral indices, the Nifty Metal fell by 0.81 percent, and the Nifty PSU Bank index saw a 0.46 percent decline, while the Nifty IT index showed modest strength with a 0.04 percent gain. Additionally, gold prices slid by 0.68 percent, and silver prices plunged 2.92 percent.

(With inputs from agencies.)