AI Jitters Trigger Sharp Selloff In IT Stocks; Is This A Buying Opportunity?

Indian IT stocks witnessed a sharp selloff, with the Nifty IT index plunging over 5% amid global tech jitters triggered by fresh AI developments from Anthropic. Wall Street saw heavy corrections overnight, spilling over into domestic markets and dragging down frontline IT names. Market experts Sharad Avasthi, Head of Research (PCG), SMIFS believe the reaction may be overdone, highlighting that Indian IT companies have already transitioned towards high-margin, complex digital and AI-led services. Large-cap names like TCS and Infosys, along with select mid- and small-cap stocks, could offer attractive long-term opportunities amid the correction.