Generative AI Fears Trigger Rs 50,000 Crore Notional Loss for MFs in IT Stocks

• Mutual funds experienced a notional loss of over Rs 50,000 crore in IT stocks since February due to generative AI concerns.
• MFs' combined investment in top 10 IT stocks fell from Rs 3.56 lakh crore to Rs 3.04 lakh crore by February 13.
• Infosys, TCS, and HCL Technologies saw significant notional losses of Rs 22,600 crore, Rs 8,600 crore, and Rs 5,800 crore respectively.
• The Nifty IT index declined 14 percent in February, with major IT stocks falling between 10-16.5 percent.
• Analysts predict AI could impact IT firms' revenue growth and application implementation services due to faster migration cycles and deflation in existing service lines.