Indian Tech Stocks Plunge Amid Rising US Yields and AI Fears

Indian tech stocks are under pressure due to rising US bond yields, geopolitical tensions, and concerns about AI-led disruption. The Nifty IT Index has fallen nearly 3%, with big names like Infosys seeing as much as a 4% cut in intra-day trade.

The sharp increase in visa costs is also weighing on investor sentiment, particularly for large IT services companies that rely on H-1B visas to deploy skilled professionals in the US. The $100,000 fee introduced by the US Department of Homeland Security has led to a significant decline in H-1B visa lottery participation.

Analysts believe that the valuation of companies in the IT sector have improved and investors should look at long-term prospects rather than short-term sentiment. However, the extent of the correction will depend on the duration of geopolitical risks, US technology spending, visa-policy developments, and the pace of AI-led disruption.