NSE Composite Falls 1.2% As IT Sector Sell-off Intensifies Amid AI Fears

Indian equities closed lower on February 12, with the NSE Composite Index down 1.2% (-1.20%) as fears over AI-driven disruptions intensified. The IT sector accounted for the largest single-day decline, falling 2.4%, dragged by companies reassessing exposure to generative AI and automation risks. The decline followed a 2.1% drop on February 11. "Short-term volatility is likely as firms update risk assessments and earnings guidance," said Saurabh Gupta, economist at Canara Robeco. The broader market retreated from a 10-day high, with the Nifty 50 down 0.8% (-0.80%) and volume rising 23% year-to-date.