US AI Stocks Lose $3 Trillion In Market Value, But Infosys, TCS, Wipro, And Other IT Stocks Rally; Can India's IT Sector Gain From The Sell-Off?

Indian information technology (IT) shares moved higher on 06 November 2026 despite a deepening sell-off in global artificial intelligence (AI) stocks. Infosys advanced more than 2% during the session, while Tata Consultancy Services (TCS) climbed 3%.

Wipro, HCL Technologies, Coforge and Persistent Systems also recorded gains of up to 2% after the opening bell. The contrasting moves have brought India's perceived anti-AI advantage back into focus.

At 11:42 am on 6 November 2026, Infosys shares were trading at ₹1,171.20, up 0.33%, while TCS shares gained 0.53% to ₹2,509 on the National Stock Exchange (NSE). Wipro shares rose 0.68% to ₹199.75, and HCL Tech shares advanced 0.81% to ₹1,442.10. Coforge shares were down 0.58% at ₹2,066.90, while Persistent Systems shares edged up 0.29% to ₹6,127.50.

US AI Stocks Face A Sharp Correction

The Nasdaq dropped 6%, its biggest fall since the Covid-19 crash in March 2020. The index entered corrective territory after falling 10% from its record closing level on 06 October 2026. Nvidia declined more than 9%, while the Philadelphia Stock Exchange Semiconductor Index plunged over 12%.

The sell-off erased $3 trillion in market value from S&P 500 companies. South Korea's KOSPI also dropped more than 9%, triggering a circuit breaker.

The market reaction followed concerns that tighter US regulation could slow the expansion of AI infrastructure. A global investment decision research executive quoted in the report said that even a slowdown in infrastructure development could challenge the growth narrative, which has relied heavily on rapid expansion.

Indian IT Services Firms Could Benefit From The AI Reset

Indian IT stocks had faced sharp share-price declines earlier in the year as investors worried that new AI tools could displace traditional software and services businesses. The latest global sell-off has revived the argument that Indian IT services providers could benefit as investors reassess the valuations and spending plans of AI companies.

The concerns over the scale of AI infrastructure investment are also highlighted. AI stocks and the market could be in a denial phase lasting six to nine months, drawing a comparison with previous market bubbles. It was also cautioned that an AI bubble was difficult to avoid completely.

Could Global Capital Rotate Towards Indian IT Stocks?

There is a possibility that Indian IT firms may benefit from cash fleeing expensive AI-related investments. A report predicts that India will gain from such a transition, while building its own AI capabilities.

But fears of excessive hyperscaler spending and the likelihood of an AI bubble remain key threats for global markets.

Source

NSE

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