Foreign Investors Resume Selling Indian IT Stocks on AI Scare

Attendees at the Anthropic Builder Summit in Bengaluru, India, on Feb. 16.

Photographer: Samyukta Lakshmi/Bloomberg

The growing threat posed by artificial intelligence to the software industry has led foreign investors to cut exposure to Indian information technology stocks.

Global funds sold about 110 billion rupees ($1.2 billion) worth of Indian IT shares in the first half of February, according to data compiled by National Securities Depository Ltd. Foreigners had turned buyers of IT stocks in December after a five-month selloff, but have resumed their withdrawal from the sector this year.