Indian IT Stocks Hold Firm Amid Global AI Sell-Off

Indian technology services shares have repeatedly gained when AI-heavy global stocks fall, as investors weigh India’s limited exposure to AI infrastructure

By The Veritas Desk | 7 November 2026 at 2:59 am

The NIFTY IT index trades around 33,000–33,242 (up over 1% recently, hitting a multi-month high around 33,242.20 as of November 6, 2026).

Synopsis

Indian IT services stocks have consistently done better this year in global technology stock selling offs. The pattern can be explained by the fact that the sector is not heavily exposed to AI infrastructure valuations and some investors have exited early with heavy losses, prompting a rotation into Indian companies. The Nifty IT index is down by 2026. I didn't see anything like that 1.3 per cent increase in the notes for November 5-6, but here's the documented pattern.

No report was found confirming that there was a 1.3 per cent rise on November 5 or 6. There are multiple documents of earlier episodes.

A repeating pattern

The Nifty IT index rose about 2 per cent to end at a three-session high of about 8 per cent, with TCS up about 3 per cent, HCLTech up about 3 per cent and Infosys gaining close to 3 per cent on October 15. The index rallied by almost 3 per cent on July 28 after a worldwide decline in stocks of AI and semiconductor firms, causing a shift to India's IT stocks.

Source

“India has not been exposed to a lot of AI infrastructure, which was proving to be a game-changer,” say analysts

The backdrop

The sector started from a weak base. Nifty IT was the largest loser in the segment with a 22 per cent loss for the year till July. Some of the pressure was related to fears that AI will diminish the demand for services.

These rallies are not always predictable but they can be quite steep. Investors are still debating whether the global AI sell-off is a rotation or a reset that will impact clients' spending plans.

Whether this rotation will persist will depend on client budgets, and advice from big US customers. For the time being, Indian IT could continue to play a counterpoint to the international AI trade.