3 Reasons Why IT Stocks Are Falling? How To Invest Ahead?

Indian IT stocks saw sharp selling as fresh AI disruption fears resurfaced, despite largely stable Q3 earnings and no major negative surprises. Devarsh Vakil, Head Of Prime Research, HDFC Securities say the sector is going through a structural transition, with margins under pressure and traditional service models being challenged by AI-led software deployment. While caution remains in the near term, experts do not see a deep downside given strong balance sheets and high cash reserves. Investors are being advised to stay underweight for now, avoid panic exits, and wait for further dips or clearer signs of business model stabilisation before adding exposure.