Indian Stocks Decline Amid Ai Concerns, Trade Developments

On February 27, 2026, Asian markets continued to decline, with Indian stocks facing significant pressure as fears over artificial intelligence's impact on earnings 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. Despite the overall decline, sectors such as public sector banks and consumer durables showed resilience, with public sector banks gaining 8.9% on robust earnings, and the consumer durables index climbing 9.3% due to government tax cuts boosting demand expectations.