IT Sector Turmoil: Infosys Drops from Top 10, TCS Slides to Sixth, AI Impact Under Scrutiny The Indian IT sector is facing a significant downturn as Infosys, once a dominant player, has fallen out of the top 10 most valued firms in the country. Meanwhile, Tata Consultancy Services (TCS), traditionally the second-largest IT firm, has slipped to sixth place. Analysts are pointing to artificial intelligence (AI) as a key factor driving this shift, alongside slowing revenue growth and investor uncertainty. Infosys, which has lost over ₹2 lakh crore in market value this year, is no longer part of the top 10 list. Its shares fell nearly 7% on the latest trading day, pushing its year-to-date decline to 30%. The company’s market cap has dropped to approximately ₹4.9 lakh crore, a stark contrast to its previous position. Despite reporting a net profit of ₹8,501 crore for the March quarter, which exceeded expectations, investors are wary of its future growth prospects. Infosys has projected a revenue growth range of 1.5% to 3.5% for the fiscal year 2027, far below the market’s anticipation of higher growth. TCS, the industry leader, has also experienced a sharp decline. The firm, which was previously consistently ranked second, now occupies the sixth position. The drop is attributed to broader sectoral challenges, including the impact of AI and automation. While TCS has secured a spot in the top 10 with a market cap of ₹5.1 lakh crore, its position reflects the sector’s overall struggles. Experts suggest that the downturn is structural rather than temporary. The IT sector is grappling with the rapid adoption of AI, which is displacing traditional roles and reducing demand for certain services. Companies like Infosys are investing in AI platforms such as Topaz, but the transition is proving challenging.#artificial_intelligence #tcs #infosys #life_insurance_corporation_of_india #it_sector
