Indian Stocks Decline Amid Ai Concerns And Trade Optimism

On February 27, 2026, Asian markets continued to decline, with Indian stocks facing significant pressure due to fears over artificial intelligence's impact on earnings, which overshadowed positive trade developments. The Nifty 50 fell 1.25% to 25,178.65, marking its third consecutive monthly decline, while the BSE Sensex dropped 1.17% to 81,287.19. The IT sector suffered its worst month since September 2008, plummeting 19.5% in February, as concerns grew over the profitability of Indian IT companies in an AI-driven landscape. Saurabh Jain from SMC Global noted, "There is now a cloud of uncertainty hanging over the profitability and margin outlook for Indian IT companies because of AI," highlighting the challenges ahead for the sector. Meanwhile, in the U.S., Wall Street's main indexes, including the S&P 500 and Nasdaq, are on track for their steepest monthly drop since March 2025, driven by similar AI anxieties and inflation concerns. The S&P 500 information technology index tumbled 1.3%, and the broader software index lost 2%, reflecting a significant sell-off in tech stocks amid fears of industry-wide AI-driven disruptions, as reported by the Financial Times.