LIC's IT Stock Investments Plummet by Rs 42,500 Crore in Two Months Amid AI Fears

• Life Insurance Corporation of India's (LIC) investment in IT stocks declined by Rs 42,500 crore in two months.
• The decline is primarily attributed to fears over artificial intelligence disruption impacting the IT sector.
• LIC experienced the greatest value erosion in Infosys and Tata Consultancy Services, losing Rs 26,510 crore.
• The Nifty IT index extended losses, falling to a multi-month low and eroding nearly 21% in February.
• Analysts predict a 14%-16% gross deflationary risk from AI to the overall IT sector revenues in the coming years.