Sensex, Nifty open weak, concerns of AI impact on IT sector continue to pressure markets

MUMBAI: The domestic stock markets started the fresh week on a weak note on Monday, with both benchmark indices opening in the red amid continued concerns about artificial intelligence (AI) disruptions in the IT sector. The Nifty 50 index opened at 25,423.60, down by 47.50 points, or 0.19 per cent. Similarly, the BSE Sensex opened at 82,480.40, declining by 146.36 points, or 0.18 per cent. The decline reflects cautious sentiment among investors at the start of the trading week.

Market experts said concerns about AI-driven disruptions continue to affect IT companies, which are an important part of the Indian stock market.

Ponmudi R, CEO of Enrich Money, said, “Persistent concerns around AI-driven disruption continue to act as a key overhang for IT heavyweights, reversing part of the optimism earlier sparked by the US-India interim trade framework and reinforcing a broader risk-off undertone. Stabilisation within the IT sector will be crucial for rebuilding broader market confidence”.

He further added, “FII participation has turned mixed and cautious in recent sessions, while steady DII inflows are offering a degree of domestic support. In the near term, sentiment remains fragile, with markets likely to trade in a consolidation phase until clearer direction emerges from global macro signals”.

The broader market indices on the NSE also saw declines. The Nifty 100 was down by 0.22 per cent, while the Nifty Midcap 100 fell by 0.46 per cent. The Nifty Smallcap 100 also declined by 0.62 per cent, indicating weakness across companies of different sizes.

Among sectoral indices, most sectors were under pressure. The Nifty Metal index declined by 0.81 per cent, while the Nifty PSU Bank index fell by 0.46 per cent. The Nifty FMCG index also slipped by 0.18 per cent. However, the Nifty IT index showed marginal strength and was up by 0.04 per cent.

Meanwhile, gold and silver prices also declined on Monday. Gold prices fell by 0.68 per cent to Rs 154,830 per 10 grams for 24 karat gold. Silver prices saw a sharper fall, declining by 2.92 per cent to Rs 237,222 per kilogram.

In other Asian markets, movements remained mostly flat. Japan’s Nikkei 225 index was down marginally by 0.09 per cent at 56,890, while Hong Kong’s Hang Seng index gained marginally by 0.29 per cent. Markets in Taiwan and South Korea remained closed due to holidays.

Overall, major Asian markets showed limited movement, reflecting cautious investor sentiment. Indian stock market may remain in a consolidation phase in the near term until clearer global economic signals emerge and stability returns to the IT sector. (ANI)