India's Nifty IT index has fallen to a three-year low after bellwether company Accenture issued a weak outlook, impacting investor confidence in the sector.

The swift advancement of artificial intelligence - particularly Anthropic’s recent innovations - has unsettled Indian technology stocks. The impact has been sharp, with the Nifty IT index dropping abo

The Indian IT sector has been the worst-performing major sector in the Indian market over the past 12-18 months, with the Nifty IT index hitting a near 3-year low in May 2026, losing over a quarter of its value since the year began, possibly due to the impact of AI.

The Nifty IT index experienced a 4% decline following poor fourth-quarter earnings reports, with "AI deflation" cited as a contributing factor weighing on the industry.