AI scare triggers worst FPI fortnightly exit from IT stocks since July 2025

Fears around artificial intelligence (AI) sparked a global selloff in information technology (IT) stocks, dragging down domestic software shares and prompting the heaviest foreign portfolio investor (FPI) outflows since the second half of July 2025.

- SAI ARAVINDH

FPIs sold IT stocks worth ₹10,956 crore in the first half of February, according to the data from National Securities Depository Ltd (NSDL). During the same period, Dalal Street saw a total inflow of ₹29,709 crore, with IT stocks seeing the worst selloff.

On the bourses, the Nifty IT index has declined 15 per cent so far in February, putting it on track for its worst monthly performance since March 2020. The losses were led by Coforge, which fell 17.7 per cent, followed by LTIMindtree, down 17 per cent, and Infosys, which slipped 16.5 per cent. The benchmark Nifty 50 index is up 1.2 per cent so far this month.

Apart from IT stocks, global funds sold fastmoving consumer goods (FMCG) and Healthcare stocks worth over ₹1,000 crore each, according to NSDL data. Financial services and capital goods saw the most inflows in the first half of February.