New Delhi: Indian equity markets ended a volatile week in the red, with benchmark indices falling around 1% amid global uncertainty and growing concerns over the rapid rise of artificial intelligence (AI). The selloff was led by heavy losses in information technology (IT) stocks, as investors worried that AI could disrupt traditional outsourcing and software service models.
On Friday, the Sensex plunged 1,048 points, or 1.25%, to close at 82,626. For the week, the index declined 1.14%. The Nifty also fell sharply, ending the day down 1.30% at 25,471 and posting a weekly loss of 0.87%.
AI Concerns Weigh on IT Sector
The biggest casualty of the week was the IT sector. The Nifty IT index slipped to a 10-month low as fears intensified that faster adoption of AI technologies could hurt revenue growth and margins for Indian IT companies. Although some buying emerged toward the end of the week, sentiment around future earnings remains cautious.
Market participants linked the weakness partly to selloffs in U.S. equities, where investors have also turned wary about the impact of AI on corporate profitability and employment trends.
Broad-Based Sectoral Weakness
Most major sectors closed the week lower:
- Metal stocks dropped the most, sliding 3.3%.
- Real estate shares declined 2.2%.
- FMCG stocks fell 1.9%.
In contrast, broader markets showed relative resilience. Small-cap stocks outperformed, with the Nifty Smallcap index gaining 0.56% during the week.
Global Factors Add to Pressure
Several global developments added to the cautious mood:
- Stronger U.S. dollar: Better-than-expected U.S. jobs data reduced hopes of near-term interest rate cuts, pushing the dollar higher and pressuring emerging markets.
- Geopolitical and currency developments: Reports suggesting Russia could rejoin the dollar settlement system weighed on precious metals such as gold and silver, indirectly affecting market sentiment.
What to Watch Next
Market experts say the Nifty’s 25,400 level is a crucial support. A decisive break below this could open the door for a further decline toward 25,100. Looking ahead, investors will closely track developments around AI policy discussions in India, global political signals, and cues from overseas markets. Some stability is expected in banking and auto stocks, which may help cushion broader market volatility in the coming sessions.