India's tech giants face a $115 billion market rout as earnings disappoint and growth concerns mount. Infosys and HCL Technologies both missed expectations, triggering significant stock declines and analyst downgrades. The IT sector gauge plunged over 5% to its lowest level since June 2023. Two major headwinds are pressuring the industry: weakening global macroeconomic conditions and the rapid rise of artificial intelligence threatening to disrupt traditional business models. However, valuations have become attractive, with the IT index trading at less than 17 times forward earnings compared to 30 at the start of last year. Companies like TCS and Infosys are adapting by embedding AI into their service offerings and forming strategic partnerships.
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