1. Why are Indian Shares lagging regional markets?

Indian Shares are under pressure due to a sharp $68.6 billion selloff in IT stocks. High valuations and AI related spending concerns have added to investor caution. Heavy IT weightage in indices like Sensex and Nifty amplified the fall.

2. What caused the $68.6 billion IT selloff in India?

The selloff was triggered by fears that global AI disruption may slow outsourcing demand. Investors also booked profits after strong past gains in technology stocks. Foreign institutional investors turned net sellers during the volatility.

3. Is the IT sector crisis a long term risk for Indian Shares?

Most analysts believe the risk is short term, not structural. Indian IT firms are investing in AI, cloud, and digital services. Long term demand for technology transformation remains strong.

4. How did Sensex and Nifty perform during the IT crash?

Sensex dropped over 700 points intraday before trimming losses. Nifty IT index fell more than 4 percent in a single session. Banking and FMCG sectors showed relative stability.

5. Is this a good time to invest in Indian Shares?

Experts suggest focusing on fundamentals and staggered buying. Corrections often create selective opportunities in quality stocks. Investors should track earnings guidance and global market cues closely.

IN Stocks

Indian Shares Lag Regional Markets Amid $68.6 Billion IT Selloff

ByRubaisha February 25, 2026February 25, 2026

Indian Shares slipped behind Asian peers on Tuesday as a massive $68.6 billion selloff in Indian IT stocks rattled investor confidence. While regional markets showed resilience, domestic benchmarks struggled under pressure from technology heavyweights, global AI concerns, and cautious foreign fund flows.